Summary
For the most part Australian and New Zealand Tax is quite simple as they have a basic tax rate that is charged across the board and both Xero and QuickBooks Online allow third parties (i.e. Blackpurl) to map directly to any taxes that are setup in Xero / QuickBooks Online.
This means that that once something is sold or purchased in Blackpurl, the relevant taxes will automatically be accounted for and then integrate through to your accounting package.
This also means that all reportability to your taxation authority will be done through your accounting package.
During Blackpurl Activations, your Activation Specialist would have setup your Sales Taxes and Purchase Taxes rates and settings.
Your Activation Specialist would have also set up the relevant Tax Code Mapping in System Settings > Accounting Integration - Tax Code Mapping.
The Tax Code Mapping means that Xero / QuickBooks Online have allowed Blackpurl to map directly to the tax General Ledgers that Xero / QuickBooks Online have.
Tax Settings
Where to see your Tax Settings - all of the Tax settings for your Dealership are under the Blackpurl Header - Admin > Tax Activity.
To access this section, users must have the Tax Management user permission enabled.
For information on managing user permissions, please see User Permissions in Blackpurl Reference.
Tax Activity & Settings
Once you have the correct permission, navigate from the Blackpurl Header > Admin > Tax Activity.
It will then take you to the Tax Activity & Settings screen, you will notice 4 tabs:
ACTIVITY
SETTINGS
TAX CODES
MANUAL TAX RATES
We are going to go through each tab separately below.
A. Activity
This is where reporting of taxes can be reviewed in Blackpurl.
Remember that all reportability for your taxes will be done in your accounting package, but if you need to run further reports then this is the place to go.
Simply add in your From and To dates, and then click on Create Report.
The report will give you a break down of the taxes used and what makes up the totals etc. for the date range given.
B. Settings
This section will show you what is currently setup in your Blackpurl. The setup is usually done during the Activation process.
This Settings section is broken up into four different areas:
General Settings
Account Types/Tax Exemptions
Accrued Tax Controls
Default Applicable Tax Codes
General Settings
The General Settings section should look similar to this image below. We will go over each numbered section in the photograph in the table below the image.
25. Tax ID on documents | If your government requires you to have your Tax ID on your Customer Order documentation i.e. Invoice, then this is where you would record the Dealership's Tax ID number. (Example: our Australian Dealerships and their ABN) |
26. Prices include sales tax | For Australian and New Zealand dealerships this is always enabled so it will always say Yes. |
27. Trade tax credit cannot exceed unit tax | When taking a trade-in on a Unit Deal, the trade-in tax credit cannot exceed the amount of unit tax payable. For further information, see Trade In Tax Credit Cannot Exceed Unit Tax. |
28. Unit options that are taxed like the unit | This setting is generally not used by Australian and New Zealand dealerships as they have only one tax rate.
It allows you to select which unit options are taxed at the same rate as the unit sale. Click the field to see available options. |
29. Group Individual Taxes on Sales | This is usually not used for our New Zealand and Australian Dealerships as they only have one tax rate.
If you disable this toggle then all your sales taxes on Customer Orders will list separately on the relevant Customer documentation i.e. Invoices. If you enable this toggle then all your sales taxes on Customer Order will list as one item and you get to select what to call your grouped taxes i.e. Sales Tax.
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30. Group Individual Taxes on Purchases | This is usually not used for our New Zealand and Australian Dealerships as they only have one tax rate.
If you disable this toggle then all your sales taxes on Vendor Invoices will list separately.
If you enable this toggle then all your sales taxes on Vendor Invoices will list as one item and you get to select what to call your grouped taxes i.e. Sales Tax.
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Account Types/Tax Exemptions
This section will list the Account Types/Tax Exemptions currently setup in your Blackpurl.
We do provide you with a small list of Account Types/Tax Exemptions when your Blackpurl is first created with consultation with your Activation Specialist but you can amend or add more as required.
For more information on Account Types and how to set up new ones, please see Account Types Explained.
Accrued Tax Controls
This section covers the Accrued input tax until units are sold (NITC) setting, which applies to Australian dealerships. These settings are configured at activation with your Activation Specialist, depending on whether your dealership adheres to Notional Input Tax Credit (NITC) rules.
For more information about NITC, refer to this article:
Default Applicable Tax Codes
This section shows the default applicable Tax Codes configured in your Blackpurl. These are also set up during Activation. To change the defaults, click into the relevant field and select from the available options in the dropdown.
If you don't understand what you need and/or understand the ramifications of changing these defaults, please reach out to Blackpurl Support for assistance before making any changes.
D. Manual Tax Rates
We are going to cover D. Manual Tax Rates first before we cover C. Tax Codes, as it helps to explain the Tax Codes.
For Australian and New Zealand dealerships, this section is straightforward — both countries have a basic set tax rate.
Your tax rates are usually set up during discussions with your Activation team.
C. Tax Codes
Tax Codes will allow you to combine two or more tax rates together to form the relevant applicable taxes.
For Australian and New Zealand dealerships, this is quite easy — because both countries have a basic set tax rate, there is no requirement to join multiple rates together.
Customer Orders/Vendor Invoices
Once all the tax settings are setup, each time you add a Customer Order (including Unit Deals, Parts & Accessories, and Service Jobs) or process a Vendor Invoice (for Parts, Sublets, or Units) the default tax setting will automatically load.
Once an Invoice is issued from a Customer Order, the full invoice including the taxes will integrate to your accounting package.
Once you have finalized a Vendor Invoice, the full invoice including the taxes will integrate to your accounting package.
Just remember that all reportability to your taxation authority will be done through your accounting package.