Ensure accurate invoicing and compliance by assigning the right tax rate to each item.
Adding tax to your items is essential for accurate sales records, invoice calculations, and financial reporting. Whether you’re using standard tax rates or creating custom ones, this guide walks you through the process of applying tax to an item in your system.
How to Add Tax to an Item
Step 1: From the main menu on the left, go to Item.
Step 2: Then, click the + New Item button to open the creation form.
This will open the form to create a new item.
💡Tip: You can also edit an existing item by selecting it from the item list and clicking Edit.
Step 4: On the New Item screen, go to the General Info tab. Locate the field labeled Tax, which is where you’ll assign or create a tax rate for the item.
Step 5: Select or Create a Tax Rate
Click on the Tax dropdown to see a list of available tax rates already defined in your system.
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Examples of predefined rates may include:
CANADA HST (13%)
FREELANCER SERVICE TAX AU (8%)
US Self-Employment Tax (15.3%)
If the appropriate rate isn’t available, click + New to open the tax creation form. From there, you can input the tax name, rate, and applicable region or notes.
💡Tip: Creating tax rates in advance helps standardize calculations and maintain reporting accuracy.
Step 6: After selecting or creating the desired tax rate, continue filling in other item details as needed.
Once complete, click Save. The selected tax will now be associated with that item and will automatically be applied in estimates, invoices, and other financial documents.