Set up VAT or sales tax

Goal

Tell 4fleet which tax system your business uses, your tax number and your default rate, so invoices carry the right details. This article describes the screen. It is not tax advice; confirm your rate and treatment with your accountant.

Prerequisites

• You are an owner or admin. The Finance settings are open to those two roles only.
• You know your tax system, your registration number if you have one, and the default rate your accountant gave you.
• US sales tax: you know each jurisdiction you charge, its rate, and which kinds of line it taxes.

Steps

1. Open Settings > Finance > Tax profile.
2. Check Legal entity country. If it is empty or wrong, choose the country, then select Review country change and read the preview before you apply it. This selection does not change your tax system, rates or documents by itself.
3. Under Tax System, choose EU VAT, UK VAT, US Sales Tax or No Tax.
4. Enter your VAT Registration Number. EU and UK VAT need one. The field checks the format as you type.
5. Set Default Tax Rate (%). The box is hidden when the tax system is No Tax.
6. Select Save Tax Settings.
7. If you chose a VAT system with a 0% rate, a window titled Save a 0% default tax rate? appears. Select Save 0% if that is correct, or Go back to change it.
8. For US sales tax, use the US sales tax jurisdictions card that appears below. Select Add jurisdiction and fill in the Code, Name and Rate (%), choose Taxable or Exempt for each kind of line, and mark the Default jurisdiction.
9. Tick the confirmation that the rates and line treatments are correct, then select Save jurisdictions.

Expected result

The saved tax system, number and default rate apply to invoices you create from now on. Invoices already issued keep the rate they were issued with. On a VAT system an invoice cannot be issued without your VAT number. Under US sales tax, 4fleet does not suggest or check any rate; it uses the jurisdictions you entered.

Troubleshooting

• If the VAT number is rejected, check the format. EU numbers start with a two-letter country code, and the UK system needs a GB or XI prefix.
• If an EU system is selected and the number starts with GB, switch the system to UK VAT or use an EU number.
• If new invoices show no tax, check Default Tax Rate (%). The manual invoice form also starts at 0, so type the rate there.
• If the US sales tax jurisdictions card is missing, save US Sales Tax as the system first.
• If you cannot open Finance, your role is not owner or admin.
• If your invoice cannot be issued and mentions a missing address, add it under Settings > Company > Profile & brand.