Invoices (Basic): Add a Tax Rate

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Use a default tax rate to add the tax automatically to all invoices or add it manually. You can also include a default tax rate in your invoice templates.

Covered here:

• How to Set Up Default Tax Rate
• Tax Rates in Invoices
• How Default Tax Rate Works With Invoice Templates
  

How to Set Up Default Tax Rate

A default tax rate lets you speed up your invoice-creation process.

Go to Settings > Invoice from the left menu bar. In the Preference section, fill in the Default tax rate field, then click Save.

Once you’ve added the default tax rate, it’s applied to all new invoices when you select the Tax checkbox. You’ll still be able to manually change the tax-rate amount if needed.

To find out how the default tax rate works with invoice templates, go to the section below.

Tax Rates in Invoices and Invoice Templates

When sending invoices or creating invoice templates, you can... 

• ...enter the tax rate in the Summary section.
• ...define what services are subject to tax and which aren’t (for example, transport expenses or discounts) using the TAX checkbox in the Line items section.

How Default Tax Rates Work With Invoice Templates

You have three options (for more details about creating invoices, go here):

• If you select the Sales Tax checkbox but don’t enter the tax rate, the default tax rate is applied to invoices created via automation.
• If you select the Sales Tax checkbox and enter a tax rate, that rate (not the default tax-rate setting) is applied to invoices created via automation.

• If you don’t select the Sales Tax checkbox and enter an amount, no tax is applied to invoices created via automation.