Tax rates
Where Smartworks uses your Xero tax rates, and where the tax on a document comes from.
Overview
Smartworks reads your tax rates from Xero and keeps a copy for up to 2 days. You pick from them on each quote line. On other documents Smartworks does not choose a tax rate, and Xero applies its default for the item, with one fixed exception for bills.
XeroTax rates
Cached 2 days
SmartworksTax Rate on quote lines
Saved with the quote
XeroQuote
Where each document’s tax comes from
| Document | Tax on each line |
|---|---|
| Quotes | The Tax Rate you choose on the line. The list shows your active Xero tax rates that can apply to revenue. |
| Invoices | Not set by Smartworks, so Xero applies its default for the item. Note lines with no quantity have no tax. |
| Purchase orders | Not set by Smartworks on a new order, so Xero applies its default for the item. |
| Bills | Always the tax rate with the Xero code INPUT2. |
The GST/VAT Rate setting
GST/VAT Rate in Invoicing settings is not a Xero tax rate. Smartworks uses it only to work out the GST and Total incl GST shown under a job’s lines. The tax on the invoice in Xero comes from Xero’s default for each item.
What you change where
Tax rates are created and changed in Xero. Smartworks has no screen for them. After a change, click Update beside Tax Rates in Xero Data Sets.
Limitations
- A tax rate added or changed in Xero can take up to 2 days to appear on quote lines, unless you click Update.
- The GST and total under a job’s lines use GST/VAT Rate, while the invoice uses Xero’s default for each item. They differ when an item’s Xero rate is not the same as that setting.
- Every line on a bill that Smartworks creates uses the tax rate with the code INPUT2, whatever the item or purchase order line says. In a New Zealand organisation that is GST on Expenses.
See also
- Quotes - where you choose a tax rate on each line.
- Invoicing settings - the GST/VAT Rate setting.
- Purchase orders and bills - how bills are created.