To suit different financial systems, different tax rates can be created. You need to create at least one tax rate.

The details for each tax rate are:

• Code - this is an alphanumeric code of up to three characters to identify the tax rate, eg. 'GST'.
• Description - a description of the tax rate, eg. 'G.S.T. (10%)'. This description is what is displayed in the transaction when choosing the tax rate for the transaction and its components. This can be up to 40 characters.
• Type - set to 'Goods & Services Tax' or 'Sales Tax' to determine how the tax on sales & purchases using it are handled when exported.
  
• Rate - the rate as a percentage, eg '10.00'. For a tax rate the equivalent of being exempt of tax, this should be '0'.
• Paid Category - the GL Category this tax should be linked to for purchases.
  
• Received Category - the GL Category this tax should be linked to for sales.

Once a tax rate has been assigned to a product it cannot be deleted.