# Tax Rates

<span style="font-size:14pt;">Tax Rates &amp; Tax Groups – User Guide</span>
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<span style="font-size:14pt;">1. Adding a Tax Rate</span>
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Tax rates are used to calculate tax on sales and purchases.

### Steps to Add a New Tax:

1. Go to **Settings → Tax Rates**.
2. Click **Add**.
3. Enter a **descriptive name**  
    *(example: VAT @ 5%)*.
4. Enter the **Tax Rate (%)**.
5. Save the tax rate.

<span style="font-size:14pt;">2. Creating Tax Groups</span>
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Tax Groups are useful when **more than one tax** needs to be applied to the same sale or purchase.

### When to Use Tax Groups:

- Multiple taxes apply to a single invoice
- Combined tax calculation is required

### Steps to Add a Tax Group:

1. Go to **Settings → Tax Rates**.
2. Click **Add Tax Group**.
3. Enter a **meaningful group name**  
    *(example: GST + Service Tax)*.
4. Select the taxes you want to include in this group.
5. Save the tax group.

### Important Notes About Tax Groups:

- The **total tax rate** of a tax group is the **sum of all included taxes**.
- If you edit a tax inside a tax group, the group’s total tax rate updates automatically.
- A tax **cannot be deleted** if it is already being used in a tax group.

<span style="font-size:14pt;">3. Disabling Tax in the System</span>
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If you do not want to use tax in purchases or sales, follow these steps.

### Steps to Disable Tax:

1. Go to **Settings → Business Settings**.
2. Uncheck **Enable inline tax in purchase and sell**.
3. Uncheck **Enable Price &amp; Tax info**.
4. Set **Default Sale Tax** to **None**.
5. Save changes.

### Important Note:

- When inline tax is disabled, the **“Price Including Tax”** column will **not appear** on the POS screen.