This article is regarding the Other Tools > Tax Activity & Settings section


Basically anything to do with sales tax or purchase tax is in this section from setup / editing / reporting etc 



Accessing the Tax Activity & Settings 


To access the Other Tools > Tax Activity & Setting section, the user needs to have the User Permission - Tax Management


For further information about User Permissions, please review our article - Current User Permissions



Once the user has the relevant User Permission, then the user will be able to access the Tax Activity & Settings section from the Blackpurl Header

  • From the Blackpurl Header > click and then select




  • Once you have logged into 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 


To run your Tax Activity report (also known as the Tax Detail Report) - add your From and To date range > click



By default, the report will automatically Exclude Internal Invoices but if you want to include Internal Invoices, uncheck the relevant checkbox and then just run the report again



The Tax Activity report will then summarise your Tax Collected on Sales as well as list the relevant tax names that make up that section and summarise your Tax Paid on Purchases as well as list the relevant tax names that make up that section


Our example below:


We ran the Tax Activity report for the period 1st April 2024 to 30th April 2024 (excluding Internal Invoices) and the search results are as follows: 



Let's go through the search result screen


Tax Collected on Sales 


1.Tax Name - This will list both the Totals of all the Tax Collected on Sales together with a list of Sales Taxes that make up this total
2.Transaction Count - this will list how many transactions make up this tax 
3.Taxable Amount - this will list the taxable amount that makes up this tax 
4.Tax Amount - this will list the tax that was calculated 
5.Non Taxable Amount - this will list if there was any non taxable amount 
6.TOTAL: Tax Collected on Sales - this is the total of all your Sales Taxes 
7.This will list the total tax amount that has been calculated for all your Sales Taxes
8.It will list each of your Sales Taxes and in this example, this dealership only has one Tax Collected on Sales ie bp gst collected

If you have multiple Sales Taxes then it will list all of them individually 
9.The total transactions that make up this Sales Tax 
10.The total taxable amount for this Sales Tax 
11.The total tax amount taken for this Sales Tax 
12.If there are any non-taxable taxes taken for this Sales Tax


Tax Paid on Purchases  


13.Tax Name - This will list both the Totals of all the Tax Paid on Purchases together with a list of Purchase Taxes that make up this total
14.Transaction Count - this will list how many transactions make up this tax 
15.Taxable Amount - this will list the taxable amount that makes up this tax 
16.Tax Amount - this will list the tax that was calculated 
17.Non Taxable Amount - this will list if there was any non taxable amount 
18.TOTAL: Tax Paid on Purchases - this is the total of all your Purchase Taxes 
19.This will list the total tax amount that has been calculated for all your Purchase Taxes
20.It will list each of your Purchase Taxes and in this example, this dealership only has one Tax Paid on Purchases ie gst payable

If you have multiple Purchase Taxes then it will list all of them individually 
21.The total transactions that make up this Purchase Tax 
22.The total taxable amount for this Purchase Tax 
23.The total tax amount taken for this Purchase Tax 
24.If there is any non-taxable taxes taken for this Purchase Tax



Remember at any time you can click on and when you do one of these actions, it will print or export both the summary as well as what transactions make up the section (depending on what screen you are on)


Should you wish to see what transactions make up the Sales or Purchase Tax - simply click on the Tax Name


In our example below we want to know what transactions make up the bp gst collected tax so we clicked on that tax name



Then it will provide you with a list of transactions which you are view on the screen or

To go back to the home Activity screen search result, click




B. Settings

This section is broken up into different areas:


  • General Settings

  • Account Type / Tax Exemptions

  • Accrued Tax Controls

  • Default Applicable Tax Codes


General Settings 




25.
Tax Id on documents - If your government required you to have your Tax Id on your Customer Order documentation ie Invoice, then this is where you would record the Dealerships Tax Id number (example: our Australian Dealerships and their ABN)

26.
Prices include sales tax - this is just an indicator if the Prices in your Blackpurl include sales Tax or not

- our Australian and New Zealand Dealerships need the prices to customer to include sales tax so this indicator will say Yes

- our North American Dealerships are not required to have their prices to customer to include sales tax so this indicator will say No

27.
Trade tax credit cannot exceed unit tax - This means that when you take a trade in on a Unit Deal, that the trad in tax credit cannot exceed the amount of the unit tax payable

For further information, please review our article - Trade In Tax Credit cannot exceed Unit Tax


28.
Unit options that are taxed like the unit - you get to select what options are taxed at the same rate as the Unit sale 

Simply click on the field and then it will give you the options available for you to make your selections as to which options are to be taxed at the same rate as the Unit



Account Types / Tax Exemptions

This 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 team but you can amend or add more as required

This is the relevant article going through Account Type and how to create new ones etc - Setting up Account Types (includes the control of tax exemptions)


Accrued Tax Controls 


Accrue input tax until units are sold (NITC) - this is only for particular locations ie Australia

If you move this toggle to ON > further information will be required


This setting is usually completed for you during Activation 

For further information, please review these article:




Default applicable tax codes 


These are the default applicable Tax Codes that are in your Blackpurl 


 
These are usually setup for you during Activations 


If you need to change the defaults, simply click into the relevant field > the drop down will give you the options available for selection

If you don't understand what you need or understand the ramifications of changing these defaults, please reach out to Blackpurl Support for assistance 



D. Manual Tax Rates 


We are going out of order and going to go through D. Manual Tax Rates first as it will help to then explain C. Tax Codes 


This section is broken up into Sales transaction manual tax rates and Purchase transaction manual tax rates and the title explains exactly what they are:


  • Sales transaction manual tax rates - These are tax rates that are only applicable for sale transactions ie Part Sales / Unit Deals, Service Jobs etc 


  • Purchase transaction manual tax rates - These are tax rates that are only applicable for purchase transactions ie Vendor Invoices for Parts and Units etc



What are tax rates?


For our Australian / New Zealand Dealerships - it is quite easy as there is only one tax rate (GST) in these countries (NZ GST 15% / AUS GST 10%)


For our North American Dealership - it can be quite complicated with some USA states having numerous tax rates that may need to be combined together as a Tax Code

Your tax rates are usually setup during discussion with your Activation team but it may be necessary for you to setup a new tax rates


To create a new rate > click on and then complete the New selling tax rate or New Purchase tax rate window


New selling tax rate window will look like this:

User-added image


A.   Tax Name - Type in the name of this new Tax Rate

B.   Category - Allocate the new Tax Rate a Category (accounting integration)

C.   Type - There are three options:

Fixed - the tax rate is a fixed or set rate.  For example the tax rate is fixed at 10% across the board

Escalating - the tax rate increases as the taxable amount increases.  For example the first $5000 the tax rate is 10% / for the next $5000 the tax rate is 12% etc

Tiered - the tax rates would be setup based upon the total transactional amount.  For example - normal tax rate is 7% but will change to 7.5% once the order is over $3000 

D.   Rate - Type in the percentage of the rate
  This would depend on what Type of Tax you selected in C.

E.   Forms label - When this tax prints on a Customer Invoice etc, what do you want it to read?

F.   Minimum tax - This fields come into play if you select the Type: Escalating or Tiered in C.
     This is if there is a Minimum tax

G.  Maximum tax - This fields come into play if you select the Type: Escalating or Tiered in C.
      This is if there is a Maximum tax that can be charged 

H.   SAVE - Once you have completed the New Selling Tax Rate, don't forget to click on SAVE

To edit a Tax Rate that already exists > click on User-added imageon the relevant line item and the system will open up the Tax Rate for you to make the amendments
To delete a Tax Rates > click on User-added image on the relevant line item and user will be asked to confirm the deletion



Once you have the relevant Tax Rates available for selection, you can then create Tax Codes - see the next section C. Tax Codes 



C. Tax Codes  


Tax Codes will allow you to join two or more tax rates together to make up the relevant taxes applicable 


For example a customer is in a location that the Dealership needs to be charged a State Tax of 5% and a GST tax of 8% when this customer purchases from the Dealership

The Dealership would set both of these as Tax Rates (using D. Manual Tax Rates) and then use Tax Codes to join the relevant tax rates together as a Tax Code (making sure the total correct tax is calculated and charged to the customer)


Tax Codes are split into two sections:


  • Tax Codes for sales transactions
    These are Tax Codes that are only applicable for sale transactions ie Part Sales / Unit Deals etc

  • Tax Codes for purchase transactions
    These are Tax Codes that are only applicable for purchase transactions ie Vendor Invoices etc


Your Tax Codes are usually setup during discussion with your Activation team but it may be necessary for you to setup a new Tax Code

To create a new Tax Code > click on  as a New selling Tax Code or New Purchase Tax Code window


For example - New selling Tax Code window looks like this - Tax code definition:
A.   Tax Code name - Type in the name of this new Tax Code

B.   List rates on forms - do you want to list the rates on the documentation in Blackpurl?
 Enable as required by moving the toggle or leaving the toggle off

C.   Forms label - When this taxes prints on sale documentation in Blackpurl , what wording do you
 want to use?

D.   Default  - indicate by moving the toggles if it will be the Default 

E.   Active - indicate by moving the toggle if this Tax Code to be active and available for selection in 
      Blackpurl

F.   Applicable manual rates - this section will list the relevant tax rates that have been assigned / 
      make up Tax Code  

G.   
Assign rates - if you need to assign rates, search for and then select what are the applicable Tax
 Rates that make up this Tax Code




H.  Save when finished 

To delete a Tax Code > click on User-added image on the relevant line item and user will be asked to confirm the deletion

To review a Tax Code with a view to editing > click on on the relevant Tax Code