Rates

Usually, the Rates modules are non-taxable. However, some sites can raise legal fees that are subject to GST.

The non-taxable rates charges are treated as Division 81. This setup is recommended.

If your site is using Pathway Accounts Receivable, see Pathway Accounts Receivable. Otherwise, continue:

If your site is not using Pathway water billing and legal fees and GST are not being raised, then:

  • System parameters should be set to non-taxable
  • All non-taxable types should be set as 8 (Division 81)

If legal fees and GST are being raised, then System parameters should be set to taxable. To achieve GST calculation on legal fees alone, a separate rate type must be set up. All rate types other than legal fees should be set to Non-taxable Type 8 (Division 81).

If your site is using Pathway water billing and legal fees and GST are not being raised, then:

  • System parameters should be set to non-taxable, with non-taxable type set to 8 (Division 81)
  • Water and rate non-taxable types should be set to the necessary value which is 8 - Division 81 or N - GST Free
Note: When the rate type is non-taxable and transaction type is non-taxable, then the non-taxable type is retrieved from the rate type. When rate type is non-taxable and transaction type is taxable, then the generated transaction is deemed non-taxable and the non-taxable type is retrieved from the rate type. You can also leave transaction types unchanged.

System parameters should be set to taxable if your site is using Pathway Water Billing and Legal Fees, and GST is being raised. To achieve GST calculation on legal fees alone, a separate rate type must be set up. All rate types other than legal fees should be set to Non-taxable Type 8 (Division 81). These rules apply:

  • System parameters should be set to taxable
  • To achieve GST calculation on legal fees alone, a separate rate type must be set up
  • All non-taxable rate types other than legal fees should be set to 8 (Division 81)
  • All non-taxable water rates types should be set to N (GST Free)

For all transaction type situations, these rules apply:

  • Where the rate type is non-taxable and transaction type is non-taxable, the non-taxable type is retrieved from the rate type
  • Where rate type is non-taxable and transaction type is taxable, the generated transaction is deemed non-taxable and the non-taxable type is retrieved from the rate type
  • Where rate type is taxable, but transaction type is non-taxable, then the non-taxable type is retrieved from the transaction type
Note: You can apply this rule where fines are applied to legal fees. In this situation, the transaction type is used to determine the non-taxable type. If no type had been assigned, then the default value is N.