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Tax rates and tax configuration
Tax rates are created once in settings and applied to invoices with a click. Each tax rate has a name, percentage, and optional description, and multiple rates can be combined on a single invoice for compound tax scenarios.
Creating tax rates
Tax rates are defined in your workspace settings under invoicing. Each rate has a name (e.g., "VAT", "GST", "Sales Tax"), a percentage value, and an optional description. Multiple tax rates can be created to cover different tax jurisdictions or categories, so an invoice for a client in one region can use a different rate than an invoice for a client in another.
Applying tax to line items
Tax can be applied at two levels: per line item or at the invoice level. Per-item tax assigns a specific rate to individual line items, which is useful when different services or products are taxed at different rates. Invoice-level tax applies a single rate to the entire subtotal. Both approaches can be combined on the same invoice.
Compound taxes
Multiple tax rates can be stacked on a single line item or invoice for compound taxation. When two tax rates are applied to the same amount, both calculate on the base amount and appear as separate line entries on the invoice. The invoice clearly shows each tax rate, its calculated amount, and the final total after all taxes.
Because tax rates are reusable and configurable at both the item and invoice level, invoices stay accurate across different tax jurisdictions and product categories without manual calculations.
