Tax Rates

Tax rates are the taxes, such as VAT or sales tax, that are added to your document lines.

Where to find it

Go to Settings → Tax Rates. Tick Active only to hide inactive rates.

Add a tax rate

1. Click + New.
2. Enter a Name (e.g. “VAT”) and a Rate (%) (e.g. 15 or 14.5). Rates must be zero or more and are rounded to two decimals, so 7.255 becomes 7.26%.
3. Leave Active ticked so the rate can be used on documents.
4. Click Create.

To change a rate’s name, percentage, or active status, choose Edit from its … menu. Documents you’ve already posted keep the tax they were posted with.

How tax is applied

• Set a Default tax on a product, and it’s filled in when you add that product to a document. You can change it on each line.
• Tax is worked out for each line (line total × rate) and added on top of the price. Any fraction of a cent is dropped, not rounded: 15% of 33.33 is 4.99.
• A discount on the whole document doesn’t reduce the tax. Only line discounts do.
• When posted, tax on sales is recorded as money you owe in the Tax Payable account. Tax on purchases is recorded in the same account as tax you can reclaim. Each document posts its tax as one combined line.

Stop using a tax rate

Untick Active instead of deleting. Inactive rates can’t be chosen on new documents, but your history stays intact.

You can delete a tax rate (tick it, then click the trash icon), but only if no document line or product uses it. Deleting is permanent.

Permissions

Permissions are given through access levels. Owners and Admins have all of them.

Permission	Lets you
List Tax Rates	See tax rates
Manage Tax Rates	Add, edit, and delete tax rates