Accounting Help

Your Accounting Software questions answered here

Setting Up Sales Tax

If your business is required to charge sales tax based on your location or the location of your customers, you can manage multiple sales tax rates to use when you create invoices and credits for your customers.

To add a new sales tax rate:

  • First, you will need to add at least one product or service. 
  • Then go to Settings > Accounting > Customer Invoices > Sales Tax Rates
  • Select “Add New.”
  • Complete the Name and Rate fields.

  • If you would like to set this rate as your default, check the star “Default?”  This sales tax rate will be used when you create invoices for your customers. You can change the sales tax rate directly on the invoice, if needed.  You can also add new rates directly from the invoice, if needed.  See Invoicing Your Customers.
  • Click Save.

To Edit a Sales Tax Rate

In your list of tax rates, click the “Edit” icon in the row you wish to change.  You can make changes to the Name or Rate. If you update the rate, the old rate will become inactive. If you would like to view or reactivate an old rate, you can do so by toggling to Show Inactives on the Sales Tax Rates screen.

Note if you change a sales tax rate, any invoices will reflect the sales tax rate in effect at the time the invoice was created.  The changed rate will not be applied to previous invoices.

To Delete a Sales Tax Rate

If a sales tax has been used on a customer invoice or credit, it will no longer be deletable.  Otherwise, click the trash can at the end of the row of the sales tax you would like to delete.  

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