Configure tax rates and tax jurisdictions

Phasio’s platform provides comprehensive tax management capabilities, enabling manufacturers to configure tax structures that align with their operational regions and regulatory requirements. This system ensures accurate tax calculation and application across all transactions, supporting compliance with both local and international tax regulations.

Create tax components

1. Navigate to Finances from the main sidebar, and select Taxes.
2. Click + in the top-right corner to launch the tax component creation interface
3. Short Name: Enter a concise label for the tax rate to serve as a quick reference identifier in system processes and reports (e.g., "VAT", "GST").
4. Long Name: Provide a detailed description of the tax component that clearly defines its purpose and application (e.g., "Value Added Tax – Standard Rate", "Goods and Services Tax").
5. Percentage: Enter the exact percentage value for this tax component to ensure compliance with current tax regulations in the relevant jurisdictions.
6. Click Create to save the tax component and make it available for assignment to specific tax jurisdictions.
7. To make changes later, use the edit or delete icons in the tax component management table.

Add a new tax jurisdiction

1. Navigate to Finances from the main sidebar, and select Taxes.
2. Select the Jurisdictions tab.
3. Click + in the top-right corner to launch the jurisdiction creation interface.
4. Country: Select the specific country under which this tax jurisdiction operates. This defines the primary geographical context for tax application.
5. Jurisdiction: Choose the relevant jurisdiction that specifies the territorial or governmental authority responsible for this tax structure (e.g., state, province, special economic zone).
6. Tax Components: Select all applicable tax components to associate with this jurisdiction, to build a complete tax structure that includes all required levies and charges for this region.
7. Allow Exemption: Indicate whether customer-specific tax exemptions are permitted within this jurisdiction. This enables appropriate tax relief for qualified organizations where applicable.
8. Apply to Shipping: Specify whether tax calculations should be applied to shipping charges in this jurisdiction to ensure compliance with local regulations regarding transportation taxation.
9. Click Create to save and activate the tax jurisdiction within your manufacturing and ordering systems.
10. To make changes later, use the edit or delete options available in the jurisdiction management table.