Item Tax Template

An Item Tax Template sits on an Item or Item Group and overrides the rate of a matching tax row for that item only. When an invoice carries the VAT 13% template but one line is a 5% electricity resale item, the Item Tax Template makes that line 5% while the others stay at 13%. The demo template Nepal Tax - YFF lists both tax accounts, 1241 - VAT Receivable for purchases and 2261 - VAT Payable for sales, so one item template works on both sides. It posts nothing on its own; the invoice does the posting. Without this override a mixed rate sale would need a separate invoice for every rate.

Line tax = Line net amount x item template rate / 100, replacing the invoice template rate for that line

1. 01Go to Taxes > Item Tax Template > New.
2. 02Name it, pick the company and add rate 5 rows for VAT Payable - YFF and VAT Receivable - YFF.
3. 03Save, then open Stock > Item, find the item and add the template under Item Tax.
4. 04Optionally set a valid from date so old invoices are not affected.
5. 05Create a Sales Invoice with that item and a 13% item together.
6. 06Check the Taxes table: the item tax breakup shows 5% on one line and 13% on the other.
7. 07Submit. Both amounts credit VAT Payable in one row.

Create under Accounts > Item Tax Template and attach it on the Item or Item Group.

Electricity resale items carry VAT 5% while other lines on the same invoice stay at 13%.