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[Flex] Set Up Tax Rates

Learn how to create, configure, and apply tax rates at different levels in OfficeRnD Flex to ensure accurate tax calculation in invoices.

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Tax configuration in OfficeRnD Flex helps you meet local tax regulations by assigning accurate rates to your invoiced products and services. By setting tax rates at the global, company, member, or revenue account levels, you gain full control over how taxes are applied across different billing scenarios.

This article explains how to create tax rates with multiple components, apply them where needed, and understand how the system determines which rate to use. By the end of the article, you will be able to manage your tax settings efficiently and ensure correct taxation for each invoice.

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Add a Tax Rate

To add a Tax Rate, go to Settings > Billing Settings > Tax Rates & Policies and click Add Tax Rate. You can specify:

  • Name (required) – Enter the Tax Rate name.

  • Rate – The Tax Rate will be automatically calculated based on the percentage rate of its components.

  • Type – You can add the Tax Rate type.

  • Code – You can add a unique code to identify your Tax Rate.

  • Components (required) – Each tax component needs a Name and Rate of its own. All tax components are listed on an invoice.

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Apply Tax Rate levels

Tax Rates can be applied on several levels:

  • Global tax rate – You can apply a global Tax Rate for your organization. Go to Settings > Billing Settings > Billing Rules and select a default Tax Rate in the Tax Rate menu. It applies to all products and customers.

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  • Company or member tax rate – You can apply a Tax Rate on a company or member level. To do this, go to Community > Companies and select a company. On the company page, click Edit Details, and on the Billing Details tab, select a default tax rate for the company in the Tax Rate menu. This Tax Rate is applied to all purchases that don't have a specific Tax Rate associated with them.

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  • Product Tax Rate – You can apply a Tax Rate on an account level by editing the Tax Rate Policies under Settings > Billing Settings > Tax Rates & Policies. As each Billing Plan is associated with a Revenue Account, applying a tax rate on the account will apply to all invoiced products based on the Billing Plan.

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What tax rate is applied when there are multiple Tax Rates?

When a new invoice is created, the system determines what Tax Rate to apply by checking the following settings:

  1. First, the system checks the targeted company's tax settings. If a tax is applied to the company, the system uses that value in the invoice.

  2. If the company doesn't have a tax applied, the system looks up the tax policy applied (if any).

  3. If no tax policy is applied, the system looks up the tax rates for the specific Revenue Account.

  4. If the accounts don't have a specific tax applied, the system falls back to the global tax settings under Settings > Billing Settings > Billing Rules.


FAQ: Tax Rates

Can I include multiple components in one Tax Rate?

Yes, a Tax Rate can have multiple components. Each component must have its own name and rate, and all components will be listed on the invoice.

How do I set a global Tax Rate for all customers and products?

Go to Settings > Billing Settings > Billing Rules and select a default tax rate from the Tax Rate menu. This rate applies to the entire organization.

How do I apply a Tax Rate to a specific company or member?

Go to Community > Companies, select the company, click Edit Details, and choose a tax rate under the Billing Details tab. This rate will be used unless another rate is applied at the product or policy level.

How do I apply a Tax Rate to specific products or services?

Edit the tax rate policies under Settings > Billing Settings > Tax Rates & Policies. These policies are linked to revenue accounts, and each Billing Plan follows the Tax Rate of its assigned account.

What is the order of priority when applying Tax Rates to invoices?

OfficeRnD Flex applies Tax Rates in this order:

  1. Tax rate set at the company level.

  2. Tax rate set in the tax rate policy.

  3. Tax rate set on the revenue account.

  4. Global tax rate in Billing Rules.

Can I delete or edit a Tax Rate after it has been created?

Yes, tax rates can be edited or deleted from Settings > Billing Settings > Tax Rates & Policies. However, the changes will not affect invoices that have already been issued.

Will the Tax Rate appear on invoices?

Yes, each tax component under a Tax Rate will be listed individually on the invoice.


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