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Calculating tax is easy with Deskera. Allow us to take care of your tax filing documentation, while you focus on your revenue.


Tax Calculation

Goods and Services Tax (GST) is a broad-based consumption tax imposed on imported goods and almost all supplies of products and services in Singapore. In other countries, this tax may also be known as Value-added Tax (VAT).

This expenditure tax is currently set at 7% and is administered and enforced by the Inland Revenue Authority of Singapore (IRAS), on behalf of the Singapore Government. If your company’s revenue exceeds or is expected to exceed $1 million, you will be required to register for GST within a 30 days time frame.

Charging and collecting GST.

Output tax is GST to be charged on top of the selling price of your supplies sold to your customers and must be paid to the Inland Revenue Authority of Singapore (IRAS). Input tax is GST incurred on your company’s business purchases and expenses, including imported goods, which are paid to your suppliers.

Exported goods and international services are considered Zero-Rated Supplies and are charged at 0%. Using the Deskera ERP system, you can set your cost price and selling price to be GST inclusive or exclusive.

Paying for GST.

Your net payment of GST to IRAS will be the total of output tax offset by input tax. Considering if you have a higher output tax, your business will incur GST payable. If your business has a higher input tax, you will receive a GST refund.

Filing GST.

Before you file your GST, you can use the GST Report function to review your GST transactions. Your periodic filing of GST can be made easier using the GST Form 5 generated by the system.

GST for India.

Goods and Services Tax (GST) is also known as indirect tax or consumption tax in India on the supply of goods and services. It is a comprehensive, multistage, and also known as destination-based tax. The GST in India is comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. The GST is imposed at every stage of the production process, but all the parties will be refunded in the different stages of production except the end consumer.

There are five different tax slabs for the collection of tax, and they are 0%, 5%, 12%, 18%, and 28%. The individual state government also taxed on items related to petroleum, alcoholic drinks, and even electricity. On top of that, a special rate of 0.25% will be charged on rough precious and semi-precious stones, and 3% will be charged on gold. Also, a cess of 22% or other rates on top of 28% GST applies on products such as aerated drinks, luxury cars, and tobacco.

In case you are unaware, the tax rate of most goods was about 26.5% before the implementation of GST. Post GST, the tax rate of most products have declined to almost around 18%.

GST India Tax filing for Deskera Users.

When creating an account with Deskera, users will have to fill in the respective address their business is operating and check if their businesses are required to register for GST. If they have registered for GST, they are required to fill in the 15 digits GSTIN number, the date the GST is registered and the type of scheme applied to them. All the information filled in the fields has to be accurate.

US Taxation: Nexus.

When dealing with customers based in the US, you might find yourself having to pay sales tax as dictated by the state your customer is located in. Sales tax in the US is not uniformly implemented throughout the entire country but is instead given to each individual state to govern.Therefore, each state has its own tax, making the US tax system complicated to navigate.

Fortunately, Deskera ERP is powered by Avalara, a third party online resource that calculates taxes to determine the sales taxes required for products and services sold to a customer.

Nexus Definition

Nexus is typically defined as having a significant presence or a commercial connection within the state to warrant sales tax. To determine whether your business has nexus in a particular state, you need to check each state’s unique criteria to qualify as having nexus in that state. Some of these criteria have a threshold (e.g., 200 transactions within that state regardless of monetary value), which qualifies you as having nexus in that state.

How do you determine Nexus?

Nexus is typically defined as having a significant presence or a commercial connection within the state to warrant sales tax. To determine whether your business has nexus in a particular state, you need to check each state’s unique criteria to qualify as having nexus in that state. Some of these criteria have a threshold (e.g., 200 transactions within that state regardless of monetary value), which qualifies you as having nexus in that state.

Deskera and Nexus

To ensure that the US states involved in your transactions have been successfully captured, you will need to ensure that all addresses input in Deskera must be complete, accurate, and recognizable to Avalara. Do take note to input accurate information of all the addresses together with the exact state, city, county and zip code in order to generate the right amount of sales tax rate as the tax varies as per source and even destination. Avalara will then calculate the sales tax required for each transaction.

Aside from providing the right information about the address, selecting the right product category is also a crucial factor in determining the tax rate in the United States. Using Deskera’s ERP software, our software will capture the products that are liable for sales tax with the help of Avalara API integration.

When you are filling up your business address or your Contacts’ address, there will be a suggested address prompted to you after filling up the address field. If that’s an accurate address suggested, click on the suggested address button. If not, stick to your original address.

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