Configure taxation (VAT & GST)

Taxation is set up automatically in Rentman using the default VAT rates for your country. You can manually change the VAT rates or set different rates for a project. In this article we will explain how to:

  • Change and apply VAT rates
  • Set up VAT for customers in countries that employ different VAT rates.
  • Change the VAT rate for your project or invoice

Taxation works differently for US accounts. If you are a US user, please read the last section of this article

How VAT works in Rentman

VAT rates for your country are pre-configured according to your country’s rates. You can configure how (much) VAT is charged and add different rates using VAT classes and VAT schemes.

VAT Classes
Define the different rate types for your countries. By default these are set to:

  • high rate
  • low rate
  • 0 rate (goods excluded from VAT)

To edit or create a new VAT class go to settings Configuration >  VAT Classes

VAT Schemes
With VAT schemes you link the VAT classes to a specific percentage. They allow you to charge a different VAT rate for (future) projects or invoices. 

Setting up a new VAT Scheme

VAT schemes allow you to charge different VAT rates to equipment, functions, etc. within the same project.

  • To edit or create a new VAT scheme go to settings Configuration >  VAT schemes (under financial)

VAT Schemes have three options:

  • Rates: These are the VAT classes that you've configured in Rentman (high, low, zero, etc.) 
  • Fixed rates: A single rate that will be applied to the entire project. 
  • VAT reverse charge: A 0% rate for cross-border business. 

Changing VAT rates

If you want to change the default VAT rate you can either do this by changing the percentages, or by setting a different VAT scheme as default.

Default VAT scheme and classes
To change the default VAT schemes and classes go to the settings Configuration > Financial >Financial. 

Here you can set the default rates that apply to all:

  • Equipment items
  • Crew functions
  • Transport functions
  • Insurances

VAT class for specific equipment items
VAT can vary per equipment item. For each item, you can configure what class should be used (high, low, or zero-rated in default)

  1. Navigate to the category Equipment module > double click on an equipment item to edit it. 
  2. Scroll down to the "financial" section > select the VAT class you want to set for this item

VAT scheme for specific contacts
If you have a client or a location from a country you can set a different VAT scheme for this contact. When creating projects and invoices for this contact, the VAT scheme you set for them will automatically be applied.

  1. Go to the contact_phone  Contacts module > double click on the contact to edit the details
  2. Go to the Payment tab > Choose the preferred scheme

Charging different VAT rates in your projects

You can charge a different VAT rate for a customer by changing the VAT scheme in your project or invoice.

For a complete project

  1. In an opened project, go to the Financial tab.
  2. Next to VAT in the summation, choose your desired scheme.

For an invoice

  1. Go to the monetization_on Financial module > Invoices Tab 
  2. Add a new invoice or select an existing invoice and click edit.
  3. At the bottom of the "overview" section choose your scheme.
  4. Click (Re)generate to generate the invoice with applied VAT scheme.
  5. Click Save to apply your changes.

Taxation in US accounts

In US Rentman accounts you can only set up Tax schemes with a fixed rate. You can then assign a specific scheme to contacts, and choose which equipment is taxable and which is not.

Set up Tax scheme

Tax rates can vary on federal, state, and local levels. In the settings Configuration module, you can set up different Tax schemes with fixed rates.

Mark equipment as taxable

You can choose whether to tax or not each piece of equipment. Here's how:

  1. Add (or edit) equipment.
  2. In the Data tab, go to the "Financial section".
  3. Choose between 'Taxable' and 'No tax' in the "Taxable" field.

You can also edit this information in bulk, and change this information in the Equipment tab of your projects.

Tax scheme for specific contacts

You can choose which rate to apply to each contact. Here's how:

  1. Add (or edit) a contact.
  2. Go to the "Payment tab".
  3. In the 'Payment information' section, select a Tax scheme in the 'Tax rate' field.

When you add a contact as a client or a location to your project, Rentman will ask you if you want to apply this rate.

It is also possible to manually apply a different rate in your project.

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