Set Up Tax Rates


Tax Rates allow you to apply different tax rates to items that can be invoiced. Tax rates are added and configured under Settings/Billing Settings/Tax Rates & Policies. You can Add, Edit and Delete tax rates and each tax rate may have several components.


Adding a Tax Rate

You can add a tax rate by clicking the Add tax rate button on the right side of the page. You can specify:

  • Name (required) - The name of the tax rate. 
  • Rate - The tax rate will be automatically calculated based on the percentage rate of the components.
  • Type - Optionally, you can add the type of the tax rate.
  • Code - A unique code to identify your tax rate.
  • Components (required) - Each tax component needs to have a Name and Rate of its own. All tax components can be listed on an invoice.


Applying Tax Rate Levels

Tax rates can be applied on a few levels:

    • Global tax rate - You can apply a global tax rate for your organization by navigating to Settings/Billing Settings/Invoicing and selecting a default tax rate to be applied 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 by editing the company Billing Details and setting a default tax rate for the company. This tax rate will then be 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 it to all invoiced products based on the billing plan.

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When a new invoice is created, the system first checks the targeted company tax settings. If there is a tax applied on the company, the system uses that value in the invoice. If the company doesn't have a tax applied, the system looks up the tax policy applied(if any) and then on the invoice line items' accounts. If the accounts also don't have a specific tax applied, the system falls back to the global tax setting under Settings/Billing Settings/Billing Rules.

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What To Do Next

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