Different types of taxes on Invoicera
What is Tax? Tax is a fee charged (“or levied”) by a government on a product, service, or activity.
Are there different types of taxes?
Yes, there are three types of taxes, that you can create with your Invoicera Account:
- Normal Tax
- Compound Tax
- Group Tax (combining 2 or more tax types)
A normal tax is percentage tax (also know as the primary tax sometimes) that is levied on a products OR services by the government agency.
A compound tax is a special tax that is calculated over a primary tax. Some agencies also call this as the level 2 tax, that is levied over a primary tax (Level 1 Tax).
A Group tax, as the name suggests, is a group of Normal Taxes, collected under a single name.
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Posted by Invoicera Support on 21 December 2015