Excise & Special Taxes

To access Excise & Special Taxes start the INSTALLATION Workshop program and select from the main menu Install|Taxes|Excise & Special.

Use this facility to define special government charges, such as taxes, excise and stamp duties.

For example, if you need to record a set fee, e.g., $5.00 commission for the sale of a particular stock item to be paid to a supplier, the government, a commission or authority, or some other third-party, or perhaps a set percentage or other calculation, then the appropriate charge calculation could be defined here.

This is useful when you need to track a fee, tax or charge related to the sale of goods, as a proportion of the sale price of the stock item being sold.

Up to 3 excise rates may be defined.

Excise Description

Enter the description of the tax, excise, duty, commission, charge or fee you wish to define.

Tax Category

If you want the tax, excise, duty, commission, charge or fee to apply to a particular tax category, then enter the tax rate that applies here. For more information on tax rates consult the topic: Tax Tables.

If there is no relationship between the tax rate and the item to which the exise or charge applies, see the topic section below.

Add

Tick this option to add the excise to the transaction total. (This will then pass on the charge to your customer.) If you will not be passing the charge directly onto your customers (perhaps because the cost is factored already into your sell price margins) then leave this option unticked.

Excise Calculation

The calculation or formula that is used to work out the tax, excise, duty, commission, charge or fee in relation to the stock item sale price. Example formulas include:

10 percent of the line item sell price:

I * .1

The line item sell price plus 5%

I + 5%

"I" refers to the "internal" line item total sell price. For example, if the unit sell price is $5 and 3 are sold, then I will equal $15.

Excise & Grouping Stock

If you wish to apply a tax, excise, duty, commission, charge or fee to a stock item but the tax rate is not an appropriate link between the stock item and the applicability of the calculation, you can add a field to your stock database, using the Screen Builder, to define such a link.

To do this add a field called EXCISE1 to your stock screen with these settings:

User Field: EXCISE1

Type: Yes/No (check box)

Fill in the other fields as is appropriate for the purpose of the excise/charge. For example, if this is for WET (Wine Equalisation Tax) you might type WET next to the Label field.

Save your stock screen and then for those stock items that you wish to apply the excise/charge to, tick the above field.

For the other tax calculations you may optionally use EXCISE2 and EXCISE3.

For a worked example of Excise & Special Taxes using WET (the Australian Wine Equalisation Tax) consult the topic: Wine Equalisation Tax Setup.

Applying Tax to Excise

Three formula variables are available to your tax category rate formulas for calculating tax (such as GST) on top of or exclusive of, the sell price. These are:

EX1 = 1st unit excise component of line item

EX2 = 2nd unit excise component of line item

EX3 = 3rd unit excise component of line item

To apply a tax to a sell price plus excise, use this formula:

(I + EX1) * <nTax>

Where <nTax> is the percentage of the tax expressed as a decimal fraction. For example:

(I + EX1) * .10

Calculates the sell price (I = "internal" price) plus unit excise rate #1 multiplied by 10%.

To exclude excise from tax use a formula such as:

(I - EX1) * <nTax>

To apply tax to the unit sell price plus all unit excise amounts, use a formula of this format:

(I + EX1 + EX2 + EX3) * <nTax>

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