Item Level Taxes in EZRentOut

Item level taxes in EZRentOut

Our new feature allows you more flexibility while applying taxes to your order. Instead of applying taxes to the entire Order, you can now apply individual taxes to each line item within the Order.

There are several benefits to this feature. For example, let’s say you’re renting out an order that includes heavy machinery as well as some consumable items. A special tax has to be applied only to the heavy machinery. In such cases, you can apply a tax to the individual item instead of the entire order.

Similarly, companies might find themselves in a situation where GST is applicable to a single item only, but PST is applicable to the entire order. In such cases, use line item taxes to assign GST to the individual item.

To further understand line item taxes in EZRentOut, let’s dive deeper!

Enable the feature

To apply taxes on individual items, go to Settings → Company Settings → Tax Details and select the checkbox for ‘Apply tax per individual item’:

If you leave the checkbox unselected, then the taxes will only be applied on an Order level. This means that the Order total will be taxed.

However, if the checkbox is selected, then the taxes can also be applied to individual items within the Order. This means that two taxes will be applied on two different levels – Order level and item level.

Apply tax to items

Apply tax to individual items (Assets, Asset Stock and Inventory). Go to Items → Assets → Choose a particular Asset. From the Asset Details page, click on ‘Edit’ and scroll down to the Taxation section. Here, you can choose which taxes you want to apply to the Asset. The tax for that Asset will now be automatically applied every time that Asset is added to any Order.

The ‘Available Taxes’ are the ones you can choose from to apply to the item. These taxes are not automatically applied to every new Order, and will only be applied to the particular item within an Order. The ‘Applied Taxes’ are ones that are automatically applied to each new Order and therefore cannot be removed from this menu.

Note: You can choose multiple available taxes to apply to an item.

Change item taxes within Orders

You can also change item taxes from within an Order. Go to the Orders tab and click on the particular Order. From the Order Details page, click on the edit icon and add a new column called ‘Applied Taxes’.

With this new column, you can now change the item taxes from the Order Details page. Simply click the ‘Change Tax Rate’ button highlighted below:

This opens up the following overlay, where you can add and remove the line item taxes, but cannot edit the Order level taxes:

Once you’re done, click ‘Apply Taxes’ to save the changes.

Note: Line item taxes will also be applied to any item level damages and item level discounts that are present in the Order, as shown below:

Importing Line Item Taxes from Excel

You can also set up Item Level Taxes when importing items (Asset, Asset Stock, or Inventory). Let’s look at how to apply the tax while importing Assets. Simply go to Items → Assets → Import Assets → Add new Assets or Update Existing Assets. Once you upload the Excel file, you can map the Item Level Taxes column in the file to the corresponding field in EZRentOut, as shown below:

item level tax rate

Once you’re done, simply click ‘Proceed’.

Note: The import functionality only enables you to add new taxes when adding or updating Assets. You cannot use this functionality to update existing taxes already assigned to Assets.

Line Item Taxes in Printouts

Line item taxes related sections have also been added to Printout Templates. Go to More → Printout Templates → Order and open any template of your choice to edit. Once the template opens up, scroll to the Order Line Items section.

From this section, you can add relevant fields to the template, such as the tax rate, applied tax, and calculated tax amount. To do so, click the ‘+ Add’ button on the right. This opens up the following overlay, from where you can select the field of your choice:

Once you’re done, don’t forget to scroll down and click the ‘Update’ button.

Have any questions?

EZRentOut is the leading equipment rental software used by SMBs all over the globe. Sign up today for a free 15-day trial.

For more assistance, drop us an email at support@ezrentout.com. You can also share your ideas on our Community Forum or visit our blog for detailed support posts.

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