Tax Groups
The "Tax Groups" module in Flowtly allows organizations to define and manage the tax rates and rules that apply to their invoicing and accounting processes. Tax groups serve as reusable configurations that can be assigned to invoice line items, products, and services to ensure consistent and accurate tax calculations.
Each tax group specifies a tax rate, a label, and the accounting rules that govern how the tax is recorded in financial reports. Organizations operating across multiple jurisdictions or dealing with different tax categories (such as standard VAT, reduced rates, or exempt transactions) can create separate tax groups for each scenario.
Tax groups integrate directly with the invoicing module, so that when an invoice is created or edited, the correct tax rate is applied automatically based on the assigned group. This reduces manual errors and ensures that invoices comply with applicable tax regulations from the moment they are generated.
For organizations using e-invoicing through KSeF, tax groups ensure that the correct tax codes are included in the structured XML data submitted to the national system. Proper tax group configuration is essential for passing validation checks and maintaining compliance with electronic invoicing requirements.
Example use cases
- Configure standard and reduced VAT rate groups for domestic invoicing.
- Create a tax-exempt group for transactions with international clients outside the EU.
- Assign tax groups to product categories so that invoice line items inherit the correct rate automatically.
- Update tax group rates when regulatory changes take effect, ensuring all future invoices reflect the new rates.
- Review tax group assignments across invoices to prepare for periodic tax filings.
