In ERP5 taxes are applicable through Trade Conditions. Three steps are needed to create and apply taxes:
Before beginning, you should learn what is 'Base Contribution' and 'Base Application'.
'Base Application' is the base on what is applied the tax. By default it can be 'Taxable' or 'Discounted'. We should select the 'Taxable' 'Base Application', it means that the tax will by calculated on everything that is marked as 'Taxable'.
'Base Contribution' is a way to mark everything that will be 'Taxable' or 'Discountable'. On product or service record, their is a 'Base Contribution' choice to make. We will face the choice using tax when we will have to calculate taxes on taxes (as in Quebec for example, where we first calculate TPS tax on selling price, then TVQ tax on selling price plus TPS tax. So the TPS tax will contribute to 'Taxable' Base and not the TVQ.)
The procedure goes as follows:
Once the tax has been created, You must create a Trade Condition to apply it to Orders. The procedure goes as follows:
Once the Trade Condition is prepared and validated, we have to apply it to orders. But in Orders form, you can only choose one Trade Condition. So if you created one Trade Condition to set up Prices, one for taxes, and one for conditions specific to the client (Payment and discount for example) you will have to use 'Specialised Trade Conditions'. Basically 'Specialised Trade Conditions' allows you to apply Trade Conditions to Trade Conditions.