Customizing the Tax Rates for Your Account

Video Tip - Go to the 9:59 mark of the video to view information on how to manage account settings for Proposals and Invoices (including tax rates, additional fees, line item categories and display settings).

Our system allows you to set up the standard tax rates that you apply to items in Proposals and Invoices. You can set up as many tax rates as you need. The rates you create here will show up as options when you are creating or editing a line item in a Proposal, Invoice or Template that is related to creating Proposals or Invoices.

To Manage Tax Rates:

  1. Click on your name in the top left corner and select the "Settings" option.
  2. Under the "Financial" heading, click on the "Tax Rates Manager" link.
  3. To add a new tax rate:
  4. Click on "Add Tax Rate" button.
  5. Enter the tax rate name and percentage.
  6. Click "Save" when you are finished.
  7. To edit or delete a tax rate, click on the "Actions" button next to the tax rate and select the appropriate option.

NOTE: If you edit/change the percentage of a tax rate that you have already assigned to line items, that new percentage will be implemented on all line items assessed with that tax rate moving forward; it will not change the percentage of that tax rate retroactively (that is, it will not automatically change the percentage of that tax rate for existing line items in Proposals/Invoices, unless you manually edit those items inside each Proposal/Invoice).

NOTE: You can only delete a tax rate if it has not been used at least once. Once you have used a tax rate in a line item in a Proposal or Invoice, you cannot delete it.

You can only apply one tax rate per each line item in a Proposal or Invoice. If you have cases where two taxes will apply to a single line item (say, for example, a local sales tax plus Value Added Tax, or a sales tax plus a liquor tax) you would essentially create a combo tax rate with an appropriate name (for example, Sales Tax + VAT); add together the tax rate percentages; and enter the sum of those percentages.

To Manage Markup/Discount Calculations Regarding Taxes:

The tax codes in some areas stipulate that taxes should be assessed on items after they are marked up, while other tax codes direct you to assess taxes on items prior to markup. Based on your area's tax code, you can adjust that setting here.

  1. Click on your name in the top left corner and select the "Settings" option.
  2. Under the "Financial" heading, click on the "Tax Rates Manager" link.
  3. Under the "Include Markups/Discounts When Calculating Tax in Proposal and Invoice Line Items?" heading, use the slider to select the option that applies to your area's tax code.

NOTE: If you change this option after having created one or more Proposals and Invoices, the change will be applied only to new line items being added or edited moving forward. Any line items in existing Proposals/Invoices will be left as-is so as not to affect the existing totals for those.

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