Tax Rates allow you to apply different tax rates to items that can be invoiced. Tax rates are added and configured under Settings/Billing/Tax Rates. You can Add, Edit and Delete tax rates and each tax rate may have several components.
Adding a Tax Rate
You add a tax rate by clicking the Add tax rate button on the right-hand 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.
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/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 accounts under Billing/Accounts. 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.
What To Do Next
- Find out how to set up different tax policies here.