Skip to main content
A tax code combines a tax identifier, location, and rate history so you can reuse it on lease expenses. When Spacebase generates tax expenses from a schedule, it selects the rate effective on each expense’s due date.

​
Create a code

  1. Open Company > Company Settings > Tax Codes and click Create Tax Code.
  2. Enter the code your team uses to identify the tax, select its tax type, and complete the location information.
  3. Set Is recoverable to record whether your organization treats this tax as recoverable.
  4. Enter a Description if you want specific wording on the generated tax expense line. Without one, Spacebase uses the code followed by “Tax.” Use Notes for additional reference information.
  5. Click Create Tax Code.
Select an existing code’s row to update its details. Creating and updating codes requires permission to manage company settings.

​
Add a rate and its effective date

In the Tax Rates section of the same page, click Create Tax Rate. Select the tax code, enter the rate as a percentage (for example, enter 8.25 for 8.25%), and set its Start date. Save the rate. When a rate changes, add a rate with the new start date so the code retains its earlier rate history. Each code can have only one rate for a given start date.

​
How rate dates affect tax expenses

Tax rates have a percentage and a start date. Spacebase uses the most recent rate whose start date is on or before the expense’s due date. For example, with a rate of 5% from January 1 and 6% from July 1, a generated tax expense on a 1,000 charge due June 30 is 50. For a charge of the same amount due July 1, it is 60. These are illustrative values, not jurisdiction-specific tax rates. A code’s description and location do not establish its rate. Check that the code has the required rate history before using it to generate tax expenses. The list’s latest-rate column alone does not describe every historical period. Use Export Tax Codes to download the list. For applying tax codes to lease expenses, see Lease Abstraction.