Legal Entity

Here you define your own company or companies if you work at a bigger company that consists of several legal entities. The Legal entities are used in several other places to configure different behaviour depend on the legal entity that should be used.

Note

TwoSpot is built to be used as a single system looking similar to everyone using it. Rules make sure orders for example end up on the right legal entity so it's possible to get reports separate for the entities even though you don't normally have to manually enter the legal entity.

On the legal entity you also define the sales tax rules that should apply.

Sales tax rules

Sales tax is set per legal entity, so first open the legal entity that should be updated. Each legal entity has a list of tax rules that apply. Edit or add a new rule and select the Country and possibly state that it should cover. Not select state simply means that the rule applies to any state.

Next add the tax rates that should be used, it's entered in a combination of rate, product group and product. Product group and product are both optional and if left out indicates that the rate should apply for all groups and individual products. If there isn't a rule that matches the sale, no sales tax will be applied.

For a company in Sweden the most common tax rate is 25% so if no products are sold at any other rates a simple 25 followed by no group or product is all that has to be entered. If any products use a lower rate of 12% or 6% another rule can be entered with the product group that it applies to. The system will use the more specific rules in preference to less specific rules so a rule that matches a product will be used ahead of the broader rule that covers every product sold.

For sales inside EU each country sold to should be added as 25% (or a lower rate) with the VatIDExempt flag set so that a valid VAT ID can be used. For countries outside the EU companies in Sweden should not add sales tax, so nothing needs to be entered for those since the default is to not add sales tax.