#Tax Rates

Tax rates define the taxes that can be applied to invoice line items.

#Managing Tax Rates

1. Go to Settings → Tax Rates
2. View existing tax rates or add new ones

#Creating a Tax Rate

#How Taxes Work

• Per Line Item: Each line item on an invoice can have its own tax rate
• Tax Calculation: Tax is calculated as: (quantity × unit price) × tax rate
• Tax Display: Tax amounts appear in the invoice totals section
• Multiple Tax Rates: Configure as many rates as needed for your jurisdiction

#Tax Rate Sign

The tax rate sign determines how the tax amount is displayed:

• Positive: Tax is added to the subtotal (standard for most taxes)
• Negative: Tax is subtracted (rare, used for credits or reverse-charge scenarios)

#Common Tax Configurations

#Best Practices

• Keep tax rates up to date with current legislation
• Use clear, recognizable names for each tax
• Set the most common rate as default
• Review tax calculations on invoices before sending to customers
• Consult your accountant for proper tax setup