Taxation options are configured by invoking the User Options (main switchboard) command followed by the Tax Setup command.

• To enable Bookmine to handle tax, tick the Activate Tax box.

• Enter the name of the Tax , eg GST, Federal Tax , State Tax etc

• Enter the tax rate as a percentage. The actual rate applied is computed from this value and whether your Stock prices include tax or tax is to be added to your prices. (For GST enter 10 as the tax rate and tick the option indicating that your prices include tax.)

• NOTE: Carefully examine the rest of the options and select as required. Most of the options selected here set the default behaviour of the System when invoicing and can be overridden at invoicing time on an invoice to invoice basis. It is essential, however, that the Tax rate is entered correctly before any invoicing is carried out. Most other options can be changed at invoicing time.

• To set up your Invoices to reflect the tax being applied go to the Invoice Setup form (User options – Invoice Setup from the main switchboard) Fill in the Misc Header and Subheader with any tax advice required on invoices (for GST enter TAX INVOICE in the Misc Header . The subheader can be used at your discretion. This could be used for you ABN or this could be entered in the Misc field of your address. Experiment and preview a few invoices to see how they display when previewed.
• Bookmine provides extensive opportunities when invoicing for you to override most options but the defaults should be set as carefully as possible from the beginning. Invoices already raised will retain the properties that prevailed when the invoice was raised. Invoices that have been deactivated (i.e. they have been flagged as being Shipped) must be reactivated before they can be modified in any way.
• Tax rates can be changed at any time but it should be noted that this should only be carried out with great care and under exceptional circumstances, such as a change in the tax rate. Bookmine will automatically apply the new tax rate to all invoices from then on. Existing invoices will not be effected by the changes unless they are reactivated, modified and deactivated. This is not recommended as it will possibly corrupt the audit trail.

Exports

Special conditions may apply to goods that are being exported. Bookmine can be configured to handle just about any combination of options. Make sure that you select the options that will enable you to conform to the letter of the Taxation laws prevailing in your region. Infomining takes no responsibility for non conformance resulting from options you select related to exports.

Deferred Input Tax Credits

Some taxation systems (e.g. GST) require that you track input tax credits due on goods you have bought until you sell the item. Bookmine enables you to carry out this onerous task as part of your normal cataloguing and invoicing operations.

To track deferred input credits on any item, either existing or newly acquired:

• Tick the Global option to Track Deferred Credits in the Tax Setup form (see above).

• Call up any Stock item that you wish to record a deferred credit for. (If a new item, create a new record in the normal fashion), and click on the Cost Details button. Enter the cost of the item in the field provided and tick the Deferred Tax Credit due option.

When this item is subsequently added to an invoice the operator will be prompted whether to record the deferred credit due. In some cases the credit may not still apply due to changing circumstances or due to the tax laws prevailing.

You can produce a detailed report showing all items invoiced that had deferred credits recorded against them for any given period. (This report is available from the Transactions Functions form. Select the Category and the time period you wish to report on and invoke the Deferred Tax Credit command.) These reports will enable you to easily compute your tax liability/credits for any given accounting period.

Note: to produce a report for cash based accounting systems select “Date Paid” as the category and enter the period you wish to report on, typically the previous quarter. If accounting on an accrual basis select “Date Sent” as the category and enter the period you wish to report on.

GST specific issues

Bulk Updating of Stock prices

Under GST, tax is included in the displayed prices of goods. Consequently your Stock prices should be Tax inclusive. If you wish to carry out bulk updating on your existing prices use the Replace command on the Stock form. When invoked you are presented with an interface which enables you to do global modifications on any field in your Stock records. In addition you can modify prices in any view in stock. Read the directions carefully before invoking.

You should carefully examine the options pertaining to how your Invoices will display prices. Experiment by setting and clearing various options and previewing invoices to see how the effects.

Requirements for Tax invoices under GST.

All invoices must have the words TAX INVOICE printed on them along with your ABN.

To comply:

• Go to the Invoice Setup form (User options – Invoices from the Main Switchboard)

• Fill in the Misc Header and Subheader with any tax advice required on invoices (for GST enter TAX INVOICE in the Misc Header . The sub-header can be used at your discretion. This could be used for you ABN or this could be entered in the Misc field below your address. Experiment and print preview a few invoices.

Deferred Input Credits.

Input tax credits can be claimed on secondhand goods bought from entities that are not registered for GST. This will include most of the goods you acquire from your customers across the counter. If however the value of any single item exceeds a set threshold (currently $300) you cannot claim the input credit until you sell the item. It also appears that you must refund any input tax credit already claimed on goods that you export.

Bookmine will record all deferred input credits for you. See above for details. Bookmine will also enable you to record the value of all goods exported. From this you can estimate any input credits to be refunded to the Tax office based on your pricing policies and cost of sales.

The refund due for any period is:

the input credit claimed on the total of exports (estimated by you)

minus the deferred input tax credit on any item that has been exported.

Textbook Subsidy (Deprecated after 2006)

Some new textbooks attract a subsidy (8% at the time of writing) under the ETSS scheme (Australia only).

This can be applied on an item by item basis when invoicing. The option can be activated via the Taxation setup form, accessible from the User Options button on the Main Switchboard. Enter the name of the subsidy (ETSS or other) and the percent rate in the fields provided.

While invoicing, clicking the Apply Subsidy button alongside the corresponding item will apply or remove the subsidy for that item. The radio button is ticked for each item the subsidy has been applied to.

The subsidy is computed on the discounted price of the item. Note: if GST applies the GST is collected on the pre subsidy price, not the subsidised price. This results in the GST collected to be greater than expected from the total. The rationale is that bookseller has collected the GST on the subsidy at the time of the sale and collects the full subsidy amount from the government, ie the amount collected is deemed to have been taxed already.