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Taxes

Handle tax the way your country does

Define the taxes you use at the rates you use, on prices that include them or do not. Each knows its account.

Charging the rate.
1 Jan – 31 Dec 2026Figures from the ledger for this period
Tax collected on salesUSD 38,120.00
Tax paid on purchasesUSD 21,470.00
Net payableUSD 16,650.00
Withholding (received − deducted)USD 350.00
Taxes+ New Tax
AllOn salesOn purchasesWithheld from usWithheld by us
NameTypeRateLedger accountDocumentsTotal taxStatus
VAT on salesSales20%VAT Payable9638,120.00Active
VAT on purchasesPurchase20%Default6221,470.00Active
Zero ratedSales0%VAT Payable140.00Active
Withheld from usReceipt5%Default111,240.00Active
Withheld by usPayment5%Default8890.00Active
— Each rate knows its account · collected − paid = net payable
Payment #PMT000021Matched
Northgate Timber Co · 11 Aug 2026 · Barclays current — 4471
What settles the bill
Bill total8,420.00
Paid to vendor7,999.00
Withheld tax · 5%421.00
SettledUSD 8,420.00
The vendor received less than the bill, and the bill is still settled in full. The difference is not a discount and not a shortfall.
The bill
NumberBIL000031
Balance0.00
StatusPaid
Remittable to the authority
This payment421.00
Period to date3,186.50
Held, not yoursUSD 3,186.50
— Hold back tax and still settle in full

More than one rate

Several rates, some of them zero, set on the item, the line or the whole document.

Inclusive or not

Prices that already contain the tax, and prices that do not, handled as two different things.

Its own account

Each tax lands where it belongs rather than everything going into one bucket you have to unpick.

Both directions

Tax you charge, tax you pay on purchases, and tax somebody deducted before paying you.

Capture slot · Withheld from us

A receipt with the customer’s deduction shown separately from the cash, and the account it landed in. Awaiting a capture.

The whole point

Tax happens where the document happens.

Deduct from suppliers the same way

When you hold tax back from a supplier, it becomes something you owe the authority rather than the supplier. What is remittable is a balance you read.

See how accounting works
Withheld tax
Payment #PMT000021Matched
Northgate Timber Co · 11 Aug 2026 · Barclays current — 4471
What settles the bill
Bill total8,420.00
Paid to vendor7,999.00
Withheld tax · 5%421.00
SettledUSD 8,420.00
The vendor received less than the bill, and the bill is still settled in full. The difference is not a discount and not a shortfall.
The bill
NumberBIL000031
Balance0.00
StatusPaid
Remittable to the authority
This payment421.00
Period to date3,186.50
Held, not yoursUSD 3,186.50
— Hold back tax and still settle in full
One system

Tax reaches four places at once

Each rate carries the account it belongs to, and raising the document is the entry. The tax account moves as the sale or the purchase happens rather than at month end.

Tax on a sale lands in its own account
Tax on a purchase is recoverable in its own
Tax a customer withheld clears the invoice in full
Tax you withhold becomes something you owe the authority
On sales
What you charged
On purchases
What you paid
Withheld
Both directions, both sides
General ledger
Readable over any period
Control

Controlled the way everything here is controlled

Who can change a rate, and who cannot
Rate changes held until somebody agrees
Every change recorded with who and when
What you charged, paid, withheld and owe
Name each tax the way your authority does
Rates apply per location where they differ
FAQ

Questions people ask first

Can I run more than one tax rate?

Yes, as many as your trade needs, including zero rated, each landing in the account it belongs to rather than all in one.

Can I price with tax included?

Yes, per rate. A counter price that includes tax and a trade price that does not can sit in the same business without anybody doing arithmetic.

Where do I set the rate?

On the item, the line or the document, so the usual case is automatic and the exception is still possible.

What happens when a customer holds tax back?

The invoice clears in full and what they held sits in its own account as a credit you can claim. Nothing stays open pretending to be a debt.

What happens when I hold tax back from a supplier?

The supplier is settled in full and what you held becomes something you owe the authority, as a balance you can read and remit.

Can I see what I owe the authority?

What you charged, what you paid, what was withheld from you and what you withheld, each in its own account and readable over any period.

Does tax reach the books on its own?

Yes. Raising the document is the entry, so the tax account moves as the sale or the purchase happens rather than at month end.

Can rates differ by location?

Yes, where your authority says they do, so a business trading across a border does not need two systems.

What if a rate changes?

Change it, and documents raised afterwards carry the new rate. Everything already raised keeps the rate that applied when it was raised.

Does it file my return?

No. It gives you the figures the return needs, in accounts you can read and reconcile. Filing stays with you or your accountant.

Raise one and watch the tax land

Invoice with two different rates, take a payment with tax deducted, then read the tax accounts.