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How to Create a Tax Rule

Creating a tax rule in Parsimony.com is an essential task that must be done before starting any transaction that involves taxes. It is a process that is done under the “Taxes” module of the platform. Here is a step-by-step guide on how to create a tax rule:

  1. Log in to your Parsimony.com account and navigate to the “Taxes” module.
  2. Click on “New” to create a new tax rule.
  3. Fill in the necessary details of the tax rule such as the “Tax Rule Name” and the “Tax Category.”
  4. Under the “Tax Rule” section, select the type of tax you want to apply to the transaction, whether it’s a “Standard Tax,” “Compound Tax,” or “Reduced Tax.”
  5. Enter the tax rate, which will be automatically applied to the transaction.
  6. Choose whether the tax rule is for “Selling” or “Buying” transactions.
  7. You can also set up tax exemptions, which are applied to customers or vendors that are exempted from paying taxes.
  8. Once you have filled in all the necessary information, click on “Save” to save the tax rule.
  9. You can now use the tax rule in your transactions by selecting it from the tax options dropdown.

Creating a tax rule in Parsimony.com ensures that your transactions are accurately and automatically calculated for taxes. It is an important task that ensures compliance with tax laws and regulations.