Taxes in Rackbeat

Rackbeat doesn't provide a direct option to add and work with taxes in the system.

We will go through how to work with various taxes in Rackbeat, to give you an overview of the options available to you.

There are, and can be, many different types of taxes you may encounter or work with, such as:

• Bottle Tax
• Environmental Tax
• Excise Taxes

Should the tax appear on the invoice?

If you want the tax to appear on the invoice, for example, as a line item, you will need to create the tax as an item in Rackbeat.

Here, the item should be created in an item group without the "has inventory". If you don't have an item group without the "has inventory", please visit our article: How to create item groups.

Should the tax not appear on the invoice?

If the tax should not appear on the invoice but serve as information for internal use and be used for your accounting purposes, you can use custom fields to specify the tax for the items and then manually do your calculations.

Environmental Tax

An environmental tax, such as a tax on packaging, wastewater, waste, etc., might be relevant to include on invoices. In Denmark, an example could be if you sell or produce:

• Paper and plastic bags
• Tires
• PVC or phthalates in plastic

You can read more about environmental and energy taxes directly on the Danish Tax Authority’s website. See more here: Miljø- og energiafgifter

Spirits, Wine, and Beer

"There are taxes on most goods containing alcohol (ethanol). This includes beverages like spirits, wine, and beer.

Alcohol can be tax-free if the product is not suitable for food use, and your company has a license. This may include the production of hand sanitizer."

Source: Skat.dk

This is a tax that you must pay and report to the Danish Tax Authority, so it should not appear on the invoice sent to the customer. This means the tax functions as information for internal use.

In such a case, you can use custom fields in Rackbeat to specify the tax for the items and then perform manual calculations.