There are three ways taxes are applied and calculated:
- Compound Tax
- Recoverable Tax
- Non-Recoverable Tax
In this section, we will discuss Recoverable and Non-recoverable taxes. Check Compound Tax for more information and how to create one.
A Recoverable Tax can be retrieved against the sales made. That is you will be able to recover the taxes you have paid from the taxes collected on the sales.
A Non-Recoverable Tax, as the name suggests itself, cannot be recovered. It is to be remitted to the government in full and is recorded as profit or loss.
For proper categorization of the recoverable tax, make sure to mark it when setting up the taxes.
Create a Recoverable Tax
In SlickPie, when adding taxes, it is Non-Recoverable by default. To make a tax recoverable, select the Recoverable option when adding a new tax.
Please note You can not edit/ delete a tax if a transaction is posted using that particular tax.