Choose how tax is calculated for prime invoices

You can choose how taxes are calculated for prime invoices, either tax on net amount for less retainage, or tax on gross amount.

You can also set the default prime retainage and sub retainage percentages for the work completed and the stored materials.

1. Go to Projects, open a project, and select Prime Invoices from the Project Menu.

2. From the Actions menu, select Add Manually.

3. Enter the prime retainage and sub retainage percentages for the work completed and the stored materials.

4. Select one of the following options:

   • Tax on Net Amount (Less Retainage): Select this option to calculate tax on retainage release (invoice line amount net of retainage) used for VAT/GST enabled transactions.
     Taxes are calculated on all invoices, including released/billed retainage.
     Taxes should be based on the total amount after retainage is removed.

   • Tax on Gross Amount: Select this option to calculate tax on retainage held (gross invoice line amount) for all tax solutions.

     Taxes are calculated based on the total amount before retainage is deducted.

     Taxes will be zero (0) for any released retainage.

5. Select Save & Next.