Set Up Tax Rates

Introduction

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.
  
  
• 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.
  
  
• 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.
  
  

Important

What To Do Next

• Set up different tax policies
• Adding a tax rate
• Tax rate levels
• Next step