MyDentalPractice Guides
ClinicBilling

Tax and VAT

Configure your clinic's tax rate, set inclusive vs exclusive pricing, and record exempt patients.

Overview

Healthcare tax handling differs by country. Nigeria charges 7.5% VAT on most services with some healthcare exemptions; Ghana varies by service. The platform supports inclusive (price you display includes VAT) and exclusive (VAT added at checkout) modes.

Prerequisites

  • Owner or Admin role
  • Knowledge of your country's tax rules for dental services

Steps

Open Financial settings. Settings → Financial.

Set the tax rate. Default Nigeria 7.5%, Ghana 12.5% (sample). Override if your services have a different rate.

Pick tax mode. Inclusive — listed prices already include tax (most patient-facing pricing). Exclusive — listed prices are pre-tax; tax added at checkout (B2B/insurance billing).

Toggle "Tax-exempt patients" feature. When enabled, individual patients can be marked tax-exempt (e.g., charity cases). Their invoices automatically remove tax.

Mark an individual patient tax-exempt. Open the patient profile → Edit → Tax exempt toggle → reason required (charity, government, etc.).

Verify on a draft invoice. Create a test invoice for the exempt patient — tax should be 0. Same invoice for a non-exempt patient should show the tax line.

Configure tax-exempt service codes (optional). Some procedures are statutorily tax-exempt regardless of patient. Settings → CDT Codes → click code → Tax-exempt toggle.

Generate the tax report periodically. Reports → Financial → Tax Report. Aggregates VAT charged and collected, ready for filing.

Expected outcome

  • Invoices apply the correct tax rate per setting
  • Inclusive vs exclusive renders correctly on patient PDFs
  • Tax-exempt cases skip tax with audit trail
  • Tax report aggregates accurately for filing

Troubleshooting

SymptomLikely causeFix
Tax not applyingMode is exclusive but no add-on tax lineSwitch mode to inclusive, or ensure tax line appears at checkout
Wrong rate on some proceduresService-code-level exemptionCheck CDT Codes → Tax-exempt toggle
Tax-exempt toggle missing on patientFeature not enabled tenant-wideSettings → Financial → Allow per-patient exemption
Report numbers offRefunds reduce taxable amountRefunds correctly remove tax; report is net
Currency formatted wrongTenant locale mismatchSettings → Clinic Profile → Country sets the locale

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