Tax Rates

You can create tax rates or tax groups and assign them to the purchase transactions in your organization.

Create New Tax Rate

Here’s how you can create a new tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Click + New Tax in the top right corner.
On the New Tax page, enter the following details:
- Tax Name: Enter a name for the tax rate.
- Rate (%): Enter the tax percentage.
- Tax Authority: Select or enter the name of the tax authority.

Insight: Tax Authority is the department or division authorized to collect taxes for a particular region, county, or state. For example, Travis County Tax Office is the tax authority for Austin, Texas.

Click Save.

Other Action in Tax Rates

Learn the other actions you can perform in tax rates.

Edit Tax Rates

Here’s how you can edit a tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax rate you want to edit and click the Dropdown icon.
Click Edit.
Make the necessary changes and click Save.

If the tax you’re editing has already been applied to existing transactions, you will be asked to confirm whether you want to update the new tax rate in those transactions as well.

View Associated Records of a Tax Rate

Here’s how you can view all the transactions associated with a tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax rate and click the Dropdown icon.
Select View Associated Records.

Now, in the right pane that appears, you can view the transactions where you’ve applied the tax rates. You can select the transactions and navigate to the respective transaction module.

Mark Tax Rate as Inactive

Prerequisite: You cannot mark a tax rate as inactive if it has been associated with any transactions. To mark the tax rate as inactive, you must first disassociate it from all transactions.

Here’s how you can mark a tax rate as inactive:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax rate you want to mark as inactive and click the Dropdown icon.
Click Mark as Inactive.

Now, the tax rate will be marked as inactive and can no longer be used in transactions.

Mark an Inactive Tax Rate as Active

Here’s how you can mark an inactive tax rate as active:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Click the All Taxes dropdown and select Inactive Taxes.
Hover over the tax rate you want to mark as active and click the Dropdown icon.
Click Mark as Active.

Delete Tax Rates

Prerequisite: You cannot delete a tax rate if it has been associated with any transactions. To delete it, you must first disassociate it from all transactions.

Here’s how you can delete a tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax rate you want to delete and click the Dropdown icon.
Select Delete.
Confirm your action by clicking OK to delete the tax rate.

You can also delete tax rates in bulk. Here’s how:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Select the tax rates you want to delete and click Delete in the top pane.
Confirm your action by clicking OK in the pop-up.

Create New Tax Group

You can create a tax group by combining two or more tax rates. This allows you to associate the group with purchase transactions eligible for multiple taxes.

Here’s how you can create a tax group:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Click the dropdown next to + New Tax in the top right corner.
Select New Tax Group.
Enter the Tax Group Name.
Select the tax rates to be associated with the tax group under the Associate Taxes field.
Click Save.

Other Actions in Tax Groups

Learn the other actions you can perform in tax groups.

Edit Tax Groups

Here’s how you can edit a tax group:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax group you want to edit and click the Dropdown icon.
Click Edit.
Make the necessary changes and click Save.

If the tax group you’re editing has already been applied to existing transactions, you will be asked to confirm whether you want to update the new tax group in those transactions as well.

View Associated Records of a Tax Group

Here’s how you can view all the transactions associated with a tax group:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax group and click the Dropdown icon.
Select View Associated Records.

Now, in the right pane that appears, you can view the transactions where you’ve applied the tax group. You can select the transactions and navigate to the respective transaction module.

Mark Tax Group as Inactive

Prerequisite: You cannot mark a tax group as inactive if it has been associated with any transactions. To mark the tax group as inactive, you must first disassociate it from all transactions.

Here’s how you can mark a tax group as inactive:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax group you want to mark as inactive and click the Dropdown icon.
Click Mark as Inactive.

Now, the tax group will be marked as inactive and can no longer be used in transactions.

Mark an Inactive Tax Group as Active

Here’s how you can mark an inactive tax group as active:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Click the All Taxes dropdown and select Inactive Taxes.
Hover over the tax group you want to mark as active and click the Dropdown icon.
Click Mark as Active.

Delete Tax Groups

Prerequisite: You cannot delete a tax group if it has been associated with any transactions. To delete it, you must first disassociate it from all transactions.

Here’s how you can delete a tax group:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Hover over the tax group you want to delete and click the Dropdown icon.
Select Delete.
Confirm your action by clicking OK in the pop-up.

You can also delete tax groups in bulk. Here’s how:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Select the tax groups you want to delete and click Delete in the top pane.
Confirm your action by clicking OK in the pop-up.

Disable Taxes

Note: You cannot disable taxes if they are associated with any transactions.

Here’s how you can disable taxes:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
Go to the Tax Rates pane.
Click Disable Tax in the top right corner.