Item Tax Template

Overview

Below is a business-focused explanation of the Item Tax Template as used in Dafater.

What is the Item Tax Template used for?

The Item Tax Template is used to define how taxes are applied to specific products or services in your business. Instead of manually selecting tax rules every time you sell or purchase an item, this document allows you to predefine the correct tax treatment for that item.

By assigning an Item Tax Template to an item, Dafater automatically applies the right taxes during transactions such as sales invoices, purchase invoices, or quotations. This ensures accuracy, consistency, and compliance with local tax regulations.

Prerequisites and setup requirements

Before using the Item Tax Template, the following should already be in place:

Tax types and tax rates must be defined according to your legal and regulatory requirements
Your chart of accounts should include the necessary tax accounts
Items (products or services) should be created in Dafater
Clear understanding of which items are taxable, zero-rated, exempt, or subject to special tax rules

This preparation ensures that the Item Tax Template reflects real business and compliance needs.

Typical workflow and how it fits into business processes

Create the Item Tax Template
Define which taxes apply to a specific item and at what rate.
Link the template to items
Assign the Item Tax Template to relevant products or services.
Use in daily transactions
When an item is selected in a sales or purchase document, Dafater automatically applies the predefined taxes.
Review and reporting
Taxes applied through the template flow into financial reports, helping with tax filing and audits.

This workflow reduces manual work and minimizes errors in day-to-day operations.

Key business scenarios where the Item Tax Template is essential

Selling products with different tax treatments (e.g., standard-rated vs. zero-rated items)
Offering taxable and non-taxable services
Operating in industries with item-specific tax rules, such as food, healthcare, or education
Ensuring compliance with government tax regulations
Maintaining consistent pricing and tax calculations across teams and branches

In these scenarios, the Item Tax Template ensures accuracy and uniformity.

Important considerations for users

Always verify that tax rates in the Item Tax Template match current legal requirements
Review templates regularly, especially after tax law changes
Avoid creating too many templates—use clear naming to keep them manageable
Ensure the correct template is assigned to each item to prevent incorrect tax calculations
Coordinate with finance or compliance teams when updating tax-related information

In summary, the Item Tax Template in Dafater is a critical setup document that helps businesses apply the correct taxes automatically, maintain compliance, and streamline financial operations with confidence.

Basic Information

Module: Accounts
Document Type: Setup

Fields

Field Name	Label	Type	Required	Options	Description
title	Title	Data	✓	-	Template name for defining item-specific tax structure.
company	Company	Link	✓	Company	Company within Dafater where this item tax template applies.
disabled	Disabled	Check		-	Disable this template to prevent selection in Dafater transactions.
taxes	Tax Rates	Table	✓	Item Tax Template Detail	List of tax rates applied to items using this template.

Child Tables

Tax Rates (Item Tax Template Detail)

Field Name	Label	Type	Required	Options	Description
tax_type	Tax	Link	✓	Account	Linked tax account applied to item for taxation.
tax_rate	Tax Rate	Float		-	Percentage rate used to calculate tax amount.

Permissions

Role	Read	Write	Create	Delete
Accounts User	✓
Accounts Manager	✓	✓	✓	✓
System Manager	✓	✓	✓	✓

DocType	Relationship	Module
Foodics Integration	Linked from	Dafater Integrations
Salla Integration	Linked from	Dafater Integrations
Zid Integration	Linked from	Dafater Integrations
Company	Links to	Setup