You can create custom tax rates under the Taxes section to handle both standard and complex tax scenarios — including compound or industry-specific taxes like Wine Equalisation Tax (WET).
Step 1: Create a Tax Rule
Go to Taxes in your navigation bar.
Click Create Tax Rule.
Fill out the required fields:
Tax Rule Name – a clear, unique name for your tax rule.
Tax Code – a unique code used internally or for accounting integrations.
Description – optional, but recommended for clarity.
Step 2: Choose the Tax Type
There are two main tax types you can select from:
Single Tax Rate
Use this for a standard tax rule such as GST, GST Free, or GST Exempt.
Each single tax rule includes one tax component (for example, a flat 10% GST).
Compound Tax Rule
Use this when multiple tax components apply to the same product or order.
Each compound tax rule can have up to five components.
Step 3: Add Components
Every tax rule must include a base tax rate — one of:
GST
GST Free
GST Exempt
GST None
For compound taxes:
Add a component name, component code, and rate for each component.
Components stack in order. For example:
Component 1: WET (29%)
Component 2: GST (10%)
You can choose to apply one component on top of the subtotal of the previous taxes.
This is useful in cases where a tax (such as GST) needs to be calculated after other taxes.
Step 4: Save Your Tax Rule
When you’re finished, click Create Tax Rule.
Your new rule will appear in the list, showing:
Whether it’s Single or Compound
Its effective tax rate
Edit and delete options (system tax rates cannot be changed)