Tax on individual costs

When your tax is reclaimable, each cost line carries a tax treatment that decides whether the tax inside it is reclaimed (which lifts your net margin). You rarely need to touch it: each cost type starts on a sensible default, and you only change a line when it is different.

The treatments

• Tax included: the amount you entered already includes tax, and that tax is reclaimable. Typical for parts, preparation, and general costs.
• Tax added on top: the amount is before tax, with tax added on top.
• Import tax: the whole line is a reclaimable tax payment, for example tax charged at the border on an import.
• Zero-rated: no tax, for example international shipping.
• No tax: outside the scope of tax, for example duties or statutory fees, and the vehicle purchase itself.

Defaults by cost type

When you add a cost with tax on, the line starts on the default for its category:

• Purchase: No tax.
• Transport: Zero-rated.
• Taxes & duties: No tax.
• Parts, preparation, and other: Tax included.

Shipment costs follow the same idea, with international shipping zero-rated and handling costs treated as tax-included.

Changing a line

Open the cost (or the Add cost dialog) and pick a different treatment from the small tax chip on the row. The chip shows the treatment that will be saved.

On an existing vehicle that predates tax, untouched lines read Not set and stay out of tax until you choose a treatment, so opening and saving a vehicle never quietly changes its figures. Newly added costs take their category default automatically.

When the tax chip is hidden

In a sales-tax region, where tax on costs is not reclaimable, changing a line would not affect the margin, so the tax chip does not appear.