OfficeRnD Flex supports a flexible tax system that allows you to configure tax rates at different levels: member, location, account, and organization. When more than one tax rate is set, the platform follows a defined order of priority to determine which tax rate should be applied to each invoice or line item.
This article explains the priority rules for applying tax rates and outlines how custom invoices use tax rates based on revenue account settings.
Tax Rate application priority
If tax rates are defined at multiple levels in OfficeRnD Flex, the system applies them using the following priority:
Member or company level:
If a Tax Rate is set directly on the member or company profile, it takes precedence.
Location level:
If no tax is set at the member/company level, the system applies the tax rate from the location's assigned Tax Policy.
Account level:
If the location has no tax policy, the system applies the tax rate from the selected revenue account on the line item.
Organization level:
If no account-level tax rate is found, the system applies the organization's default tax rate.
Fallback:
If none of the above are set, the system applies a tax rate of 0%.
Exception: When a 0% tax overrides a member-level tax
If a tax rate greater than 0% is set at the member/company level, but the location's Tax Policy or the organization's default tax rate sets a 0% tax for the selected revenue account, the 0% rate takes priority.
In other words, a 0% tax defined at the account, location, or organization level will override a member-specific tax rate above 0%.
Tax Rate priority for invoice line items
When manually creating invoices and adding custom line items, the Tax Rate applied depends on the selected revenue account and its associated tax configuration.
The system follows this billing-specific priority:
Company-level Tax Rate is applied by default, unless the Revenue Account (at the location or organization level) has a Tax Rate of 0%.
If a Tax Policy exists at the location level and defines a 0% tax for the selected account,
→ The company-level Tax Rate is ignored, and 0% is applied.
If no Tax Policy is defined at the location level, but the Revenue Account is set to 0%,
→ The company-level Tax Rate is again ignored, and 0% is applied.
If no company-level tax is set,
→ The system applies the Tax Rate from the location's Tax Policy, if available.
If the location has no Tax Policy,
→ The Tax Rate from the Revenue Account is applied.
If the Revenue Account has no Tax Rate,
→ The system applies the default organization Tax Rate.
FAQ: Tax rate priority
What Tax Rate will apply if I set different rates at the company and location levels?
What Tax Rate will apply if I set different rates at the company and location levels?
The Tax Rate set at the company level will apply unless the location or account-level rate is set to 0%, in which case the 0% overrides the company rate.
What happens if I don't define a Tax Rate anywhere?
What happens if I don't define a Tax Rate anywhere?
If no Tax Rate is set at any level, OfficeRnD applies a default 0% Tax Rate.
Can a Tax Rate from a revenue account override a company Tax Rate?
Can a Tax Rate from a revenue account override a company Tax Rate?
Yes. If the Revenue Account's Tax Rate is set to 0%, it overrides the company's Tax Rate, even if the company's Tax Rate is higher.
Which rate is applied when creating a custom invoice line item?
Which rate is applied when creating a custom invoice line item?
The system first checks the company's Tax Rate. However, if a 0% Tax Rate is defined at the Revenue Account or location level, the system will use 0%.
Do location Tax Policies affect all invoices?
Do location Tax Policies affect all invoices?
Yes, location-based Tax Policies apply to all billing items for members assigned to that location unless a more specific Tax Rate (like company-level) overrides it.