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Tax Codes

MoneyWorks has a built-in table of tax codes and rates. These tax codes are associated with Accounts or Names, and the corresponding rate is used to calculate the GST or sales tax whenever a transaction is entered. You can modify the standard codes (except *) if you wish, or add new codes for special situations (e.g. special rates for rest homes, out of state sales, beverage and accommodation taxes etc). The default tax codes are:

Default Codes (most countries, not USA)
E	GST/VAT exempt [not Australia]	0%
Z	Zero-rated items [not Australia].	0%
A	100% GST/VAT (for customs)	100%
V	Standard VAT (UK, Eurozone, South Africa, Nepal, Fiji)
G	Standard GST (Australia, New Zealand, Singapore, Canada)
*	MoneyWorks System code for transactions "outside of tax system"	0%
Additional Canada GST Codes
H	Standard HST (rate varies by province)
P	PST (rate varies by province)
T	GST + PST (rate varies)
Q	QST	9.975%
Default Australian Codes
G	Standard GST	10%
I	Input taxed	0%
C	Capital acquisitions	10%
F	GST-free	0%
X	Exports	0%
W	Salary and Wage Payments	0%
P	Amounts withheld from wages	0%
U	Amounts withheld where no ABN quoted	48.5%
Additional UK Codes
VR	Reduced VAT	5%
EU	Sales/Purchases made in Northern Ireland from EU Member States	0%
Default Singapore Codes Note: Rates will increase to 8% on 1 Jan 2023 and 9% on 1 Jan 2024
G	GST (SR/TX7)	7%
E	Exempt (ES33/EP)	0%
Z	Zero Rated (ZR/ZP)	0%
A	GST on Imports (IM)	100%
IM	Imported Goods	7%
ME	Major Importes Scheme	0%
BL	Not Claimable	7%
NR	Non-registered	0%
OP	Purchases outside GST Scope	0%
E33	Reg 33 Exempt Purchases	7%
EN3	Non Reg 33 Exempt Purchases	7%
RE	Residual Input Tax	7%
ESN	Non Reg 33 Exempt Sales	0%
DS	Deemed Supplies	7%
OS	Sales Outside GST Scope	0%
IGD	Import Deferment(IGDS)	7%
RCM	Reg 33 Exempt Sales Financial	0%
GPG	SRCA-S Customer accounting supply made by the supplier	0%
CAA	SRCA-C CA supply made by the customer on supplier's behalf	100%
CAG	TXCA Std-rated purchase of prescribed gds subject to CA	7%
LVRC	Claimable portion of low-value services subject to GST under reverse charge (Box 14)	-
LVRC-	Non-claimable portion of low-value services subject to GST under reverse charge (Box 14)	0%
EMREM	Remote services supplied by electronic marketplace operator (Box 15)	8%
LVRED	Imported low-value goods supplied (Box 16)	8%
LVOWN	Own supply of imported low-value goods (Box 17)	8%
USA Sales Taxes
STA	State Tax
CIT	City Tax
CTY	County Tax
USE	Use Tax
ZER	Zero Tax
EXE	Exempt Tax
TAX	Combined Tax (STA+CTY+CIT)

To see the tax table:

1. Choose Show>Tax Rates

Adding a New Tax Code

1. Click the New toolbar button or press Ctrl-N/⌘-N

2. Type the code that will identify the new rate into the Code field

3. Type a brief description of the rate in the Name field

4. Set the Tax Type

New tax rates need to be associated with accounts specifically set up to deal with the tax. Unless you have set up additional GST/TAX accounts in your Chart of Accounts you will only have access to the two standard system accounts that MoneyWorks automatically sets up.

5. Enter the Tax control account codes for the accounts that handle incoming and (if required) outgoing Tax into the Tax Paid Account and Tax Received Account fields

6. Enter the tax rate into the Rate 2 field

If the rate is for 100% Tax

You will normally never come across 100% Tax transactions unless you are an importer. In this case you may get a bill for Tax from Customs.

7. Set the All GST/TAX radio button if this rate represents 100% GST

8. Click OK to accept these entries

Composite Taxes

The Composite Tax option allows you to specify a tax that is calculated from other predefined taxes².

To include a tax in the calculation:

1. Click the New icon

2. Enter the code of the tax to include in the Code field

3. If the tax is multiplicative (i.e. is also levied on the previous taxes in the composite tax calculation, such as QST in Quebec, or PST in PEI), set the Mult check box

4. To delete a tax from the calculation, click the Trash icon

When a composite tax is used in a transaction, an additional (hidden) detail line is added for each component tax used (unless the tax is a Sales Tax and has been “expensed” as part of a purchase).

There are some rules and restrictions for composite taxes:

• If a tax is based on a GST/VAT tax, these must be the first taxes in the calculation. For example, GST + PST is allowed, but PST + GST is not;
• A maximum of two GST/VAT taxes can be used in a composite tax;
• Composite taxes cannot be modified once they have been used. You can change the rate of the components, but not the structure itself;
• Composite taxes are calculated strictly top-down. Thus:

• For the GST content on a transaction line use detail.tax1amt
• For the balance of the tax content on a transaction line use detail.tax2amt