Mark a line as zero-rated, exempt or non-taxable

A line with no tax can mean different things to a tax authority. A zero-rated sale is taxable at 0%; an exempt sale is outside the tax but still reported; a non-taxable supply is outside GST or VAT altogether. Spine records which one each untaxed line is, so the Tax Summary and GSTR-1 list them separately.

Who can do this

Anyone who can edit the catalogue item or the document. Staff need the matching edit rights from their Team, for example to edit catalogue items or their own quotes.

The supply types are Taxable, Zero-rated, Exempt and Non-taxable (outside GST/VAT).

Set it on a catalogue item

1. Open the item — Go to Catalogue and open the item.
2. Choose the Supply type — Pick one of the four. The helper reads “Zero-rated, exempt and non-taxable items have no tax and are reported separately.”
3. Save — Lines added from this item start with its supply type.

Change it on a line

1. Open the draft — Open the quote, invoice, vendor bill or variation order.
2. Find the line’s Supply type — When a line’s tax is 0%, it shows Supply type, taken from the item, or Zero-rated when there’s no item.
3. Change it if needed — Pick the type that fits this sale.

Exempt and non-taxable lines have no tax

If a line is exempt or non-taxable and you pick a rate above 0%, Spine stops you: “An exempt line has no tax. Change the supply type to Taxable to add tax.” Change the supply type to Taxable first, then pick the rate.

Tip

A tax rate can carry a supply type too (Lines with this rate are in the rate dialog), so picking “VAT 0%” or “Exempt” on a line gives the line that type straight away.

After you issue

An issued document keeps the supply type each line had when it was issued. Changing the catalogue item later doesn’t change it.

The Tax Summary lists zero-rated, exempt and non-taxable sales and purchases with their values.