Taxes
Taxes on Proper are calculated automatically according to the tax rate you set on a subscription. Thereby, tax is rounded per line on the invoice. In line with Danish accounting legislation, amounts are rounded to two decimal points.
Examples:
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Product 1 with 25% tax: 199,90 * 1,25 = 249,875, rounded to two decimal places = 249,88
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Product 2 with 19% tax: 199,90 * 1,19 = 237,881, rounded to two decimal places = 237,88
Tax rates
On Proper, you can create as many custom tax rates as you require for your invoices. All tax rates you define will be available for all your customers. When setting up a subscription, you can select which tax rate should be applied. With each tax rate, you define how it should be displayed on an invoice (display name) and optionally some further internal explanation of when the rate should be used (description).
Each tax rate object also stores the tax mode. Select whether the rate should be Exclusive, Inclusive, Exempt, or Reverse Charge.
Create a tax rate
Open Settings → Tax rates
On Proper, go to Settings and select Tax rates.
Add tax rate
Click “New tax rate”.
Fill in details
Enter the display name (shown on invoices), select the tax mode (Exclusive, Inclusive, Exempt, or Reverse Charge), and set the rate. Optionally add a description for internal context.
Save
Click “Save”. The new tax rate will be available to use on subscriptions and invoices.
Reverse charge
In some business transactions, the reverse charge mechanism may apply. This means that the buyer, rather than the seller, is responsible for accounting for the tax due. This often occurs in cross-border business-to-business (B2B) supply of services within the EU, making it easier for companies to sell to other European countries without registering for tax there.
When the tax mode is set to Reverse Charge, the rules for reverse charging of tax will be automatically applied. Consequently, the tax rate is displayed as 0%, and the invoice will include the mandatory information: "Tax is subject to reverse charge."