Tax Rule

A Tax Rule turns a Tax Category, a party, an item or a date range into a chosen tax template. Each rule says: for this tax type (Sales or Purchase), when these conditions match, use this template, with a priority if more than one rule could apply. The demo has eight rules, one per category and side, for example Nepal VAT 13% Sales to VAT 13% - YFF and Nepal Export Purchase to VAT 0% (Export - Schedule 2) - YFF. Rules run when a party is selected and only fill the template field; the template rows do the posting. Keep one rule per category and side, because two matching rules with equal priority give unpredictable results.

1. 01Go to Taxes > Tax Rule > New.
2. 02Set Tax Type to Sales or Purchase and choose the Tax Category to match.
3. 03Pick the template under Sales Tax Template or Purchase Tax Template.
4. 04Optionally restrict by customer, supplier, item, billing country or validity dates.
5. 05Set Priority 1 and Save.
6. 06Open a new invoice for a party in that category and confirm the template is filled.

Create under Accounts > Tax Rule for each category to template mapping.

Rule: Tax Category Nepal VAT 13% uses template VAT 13% on sales.