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Tax Templates

Tax Templates

Tax Templates define how taxes are calculated on Sales Invoices, Purchase Invoices, Quotations and POs. NL-localised sites ship with templates pre-configured for standard BTW (21% / 9% / 0% / reverse charge).

Where to manage

Template type Used for
Sales Taxes and Charges Template Outgoing — Sales Invoice, Sales Order, Quotation
Purchase Taxes and Charges Template Incoming — Purchase Invoice, PO
Item Tax Template Per-item override (specific items always use a different rate)

Anatomy of a template

Each template has a child table of Tax Rows:

Field What
Type On Net Total / Actual / On Previous Row Total / etc.
Account Head The BTW or tax account to post to
Rate The percentage (21, 9, 0)
Description What appears on the printed invoice
Add or Deduct Almost always Add

Pre-configured templates on NL sites

erpnext_netherlands ships these templates:

Template Use
NL — BTW 21% Standard rate sales / purchases
NL — BTW 9% Low rate (books, food, transport)
NL — BTW 0% Exports, intra-EU, exempt
NL — BTW Verlegd Reverse charge (construction, intra-EU services)

For most invoices the default template handles things automatically. You override only for special cases.

How ERPNext picks the right template

In order of specificity (first match wins):

  1. Item Tax Template on the Item — for items always taxed differently (e.g., books always 9%)
  2. Tax Category on the Customer/Supplier — for special groups (intra-EU customer, exempt foundation)
  3. Default Sales/Purchase Tax Template in Selling/Buying Settings

Tax Category

Use Tax Categories to express customer-level tax routing:

Tax Category Application
Domestic Default 21% / 9%
Intra-Community EU B2B with valid VAT — 0% reverse charge
Export Outside EU — 0%
Exempt Non-business, foundations, charitable — exempt

Set the Tax Category on the Customer / Supplier record. Their invoices then auto-route to the matching template.

Creating a new template

For a special tax scenario (custom rate, suspended VAT, margin scheme), create a new Sales Taxes and Charges Template:

  1. Sales Taxes and Charges Template → New
  2. Name it descriptively
  3. Add Tax Rows for each component
  4. Save

Then apply it via:

  • Item Tax Template on the relevant Items, OR
  • A new Tax Category for affected customers, OR
  • Manual selection on each invoice

Item Tax Template

For items where the standard customer-level routing isn't right (e.g., books are always 9% regardless of customer), use Item Tax Template:

  1. Open the Item
  2. Item Tax → add: Tax Category = Domestic, Tax Rate = "NL — BTW 9%"
  3. Save

ERPNext now uses 9% for this item across all sales.

Common situations

  • Standard NL business — out-of-the-box templates; no setup needed beyond accepting NL localisation
  • Selling to a foundation that's exempt — give the customer Tax Category = Exempt
  • Mixed-rate invoice (book at 9%, accessory at 21%) — both Items have their own Item Tax Template; the invoice ends up with two BTW lines automatically
  • Margin scheme (second-hand goods) — talk to Prilk support; custom Tax Template required
Last updated 3 days ago
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