Tax in Other Countries
The tax implemented by the government that does not proposes any exceptional benefit to the citizens but only offers a support to the governmental curriculums for overall benefit is known as general tax. This tax is a source of public earning. The claim of general taxes is vital to all other liens and claims. The authority to impose a general tax is intrinsic in all sovereign.
Prior to registering for the general tax, find all the essential information regarding registering of general tax in the country of where you are running business or selling your goods and the factors that can influence the tax rates in that country. Additionally, find out if in that country your product list is taxable or not and are you liable to pay taxes to federal or local tax jurisdictions.
Make sure that you have below given information ready about the country before you start the configuration process:
- The tax name or taxes that you need to imply on your products
- The rate of the taxes you need to impose on your products
- Tax registration number
- Tax regulations ( it signifies, which product list should have inclusive or exclusive prices)
- Invoice requisites( it signifies what details you need to display on your invoice). You can modify the invoices as per the invoice requirements in the country, you are selling. Go to Invoice Customization page for more info.
Configuring General Tax in ChargeMonk
This segment helps you to configure General Tax in ChargeMonk:
Step 1: Update the address of your organization
Ensure that you have added the address of your organization at Settings > Configure ChargeMonk > Business Profile. Configuring taxes in ChargeMonk is not possible without completing this step in the initial phase.
Step 2: Enable Tax
Visit Settings > Configure ChargeMonk> Taxes and hit the Enable Tax option.
Step 3: Choose your price type
Enabling the taxes will forward you to a page having all the currencies that you have enabled for your site. Step 3 is setting up a price type, which signifies the price you have to quote for your service/add-on/ product can either be tax inclusive or tax exclusive for each of these currencies.
Rules vary from country to country. In some countries the price of your product is tax inclusive and in some other countries it is tax exclusive. You can select your price type to be either tax exclusive or tax inclusive based on where your consumers are based.
In case you are selling your goods to any other country in different currency than your own, go to check how to configure price type for a region so that your invoices are allied with the tax regulation of that currency.
Step 3a: Consistent Pricing
In case you select your goods to have an inclusive pricing, the regular pricing option might appeal to you. But if you are selling your product to consumers throughout the world and want to charge same price to them for your product despite of the taxes imposed as per the location of customers, use the Consistent Pricing feature.
This feature helps you to get a flat-rate charge for your service or product, in spite of the taxes implemented and the country/region of consumers. This signifies that the final invoice amount of your service or product will be same, no matter what tax rate is implemented for its sale.
Added customization within constant pricing:
- By removing the included tax, reduce the rate for non-configured regions
When you are selling your product to the consumers locating outside the taxable country where you have not register for tax then what will happen to your tax-inclusive constant price?
By enabling this feature, you can apply your constant price to them as well. In such case, no tax will be imposed and the rate will be displayed as a whole.
- For exemptions, reduce the rate by removing the tax included instead of the destination tax
When the consumer is tax exempt, what will happens to your tax-inclusive constant rate?
There is no need to enable this feature in case you want your constant rate to impose to them as well.
Step 4: Hit Add Region and choose the country you want to setup
Hit Add Region and choose the relevant country from the list of region list.
This will forward you to the configuration page of that country.
Step 5: Add your tax registration number
Add your tax registration number and label here.
Step 6: Submit your tax rates
Lastly, you will have to add the tax rate and a label that you want to apply to your invoices by ChargeMonk.