Before you can use this feature, you must enable "Use VAT/GST" within your General Preferences.
You can access this via File > Preferences > General.
(Using a Mac, choose Moneydance > Preferences > General)
You'll then need to enable VAT/GST for each category you want to assign taxes, and enter the tax rate.
You can do this when creating a new category via Tools > Categories.
Enable the "Use VAT/GST" tickbox.
You can also view and easily edit VAT/GST rates for existing categories.
To do this, select Tools > VAT/GST Settings.
This will display a table where you can enter the tax rates for each category.
You should also specify the category to which the taxes will be assigned.
When you do this, the "Use VAT/GST" tickbox in the category window (shown in the screenshot above) will be automatically enabled.
Once a category has been assigned a tax rate and tax category, any new transactions that are assigned to that category will be split into two parts -
- the tax part
- and the normal income/expense part.
The tax part of the transaction will be assigned to the specified tax category.
The splitting of any transaction in this way is subject to the "Apply VAT/GST" check box in the editable transaction fields being enabled.
If there are a large number of transactions that you previously entered that need a tax rate assigned, select Tools > VAT/GST Transactions.
This will open a window that displays all of the transactions to which VAT/GST may apply (according to your settings) so that you can set the tax rate, taxable amount and tax category for each one.
You'll see the transaction date, description, amount and category.
You should amend the "Tax Rate" field.
This will automatically update the "VAT/GST" column to display the amount assigned to tax.
Then amend the "VAT/GST Account" field to specify which category you'd like to assign the taxes to.
At the top of the window, you can specify which account you want to use when viewing the relevant transactions.
You can only view one account at a time, so you will need to repeat the process for each bank account, credit card, etc. that requires taxable spending.