Taxes

Your business’ financials are affected by regulatory taxes and each organization has different country specific taxes to adhere to. You may have added Taxes in the Quick Setup section. You can edit or add further Taxes through the Settings section.


Enabling Sales Tax

You can enable Sales Tax for your organization as early as while creating it. In the organization creation page, just check the box that says Is you business liable to collect sales tax?

Enable sales tax button

You can also enable Sales Tax for your organization, by following these steps:

Enable sales tax button

Note: If you have enabled a Recurring invoice profile or connected your account to Stripe or done both, you will be prompted to enter a default Exemption Reason and Tax Authority.

Recurring profile exemption

Alternatively, you can skip the process of manually determining and associating sales tax rates to your transactions, by using the Avalara integration. Click here to know more about this option.

Disabling Sales Tax

To disable sales tax navigate to Settings -> Taxes -> Click on Disable Sales Tax, available on the top-right corner.

Note: You can disable sales tax only if there are no transactions associated with sales tax.


Adding New Taxes

To create or add a new Tax, follow steps as below:

New tax


Editing Taxes

To edit an existing Tax follow steps as below:

Edit tax

Update Tax Rate


Deleting Taxes

To delete an existing tax follow steps as below:

Delete tax


Adding a New Tax Group

To create a Tax Group, follow steps as below:

Add Tax group


Adding a New Tax Exemption

There might be situations where you are exempt from paying taxes because of the item or the customer to whom you are selling the product. For example, the sale of medicines is exempt from sales tax in New Jersey.

To create a Tax Exemption, follow the steps below:

Add Tax Exemption


Adding a New Tax Authority

To create a Tax Authority, follow the steps below:

Add Tax Exemption


Other Actions

You can mark any one of the taxes added as the default tax. Henceforth, whenever a transaction is created, that particular tax will be selected by default. To mark a tax as the default tax, hover the cursor next to a particular tax and click on the mark as default button.

You can also delete a tax by clicking on the Trash icon.

Tax Other Actions

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