Invoices (Basic): Add a Tax Rate
This page applies to TaxDome Pro! pricing plan only. You can upgrade anytime.
A tax rate is added either manually to each invoice you create or automatically by using a default one. And the default tax rate can also be used in your invoice templates.
- How to Set Up Default Tax Rate
- Tax Rates in Invoices
- How Default Tax Rate Works With Invoice Templates
How to Set Up Default Tax Rate
Default tax rate lets you speed up the invoice creation.
Go to Settings, Integrations, then Payments. In the Preference section, fill in the Default tax rate field, then click Save.
Once you’ve added the default tax rate, it’s applied to all new invoices when you select the Tax checkbox. You’ll still be able to manually change the tax-rate amount if needed.
To find out how the default tax rate works with invoice templates, go here.
Tax Rates in Invoices and Invoice Templates
When sending invoices or creating invoice templates, you can:
- Enter the tax rate for all services included in the invoice in the Summary section.
- Define what services are subject to tax and which are not (for example, transport expenses or discounts) using the TAX checkbox in the Line items section.
How Default Tax Rate Works With Invoice Templates
The default tax rate may be taken into account when creating custom invoice templates (read more on this feature in the article). This is how it works:
- If you have selected the Sales Tax checkbox but haven’t entered the tax rate, your default tax rate will be used with all invoices created via automation.
- If you have selected the Sales Tax checkbox, and then entered the tax rate, your entered tax rate will be used with all invoices created via automation (the default tax-rate setting is not taken into account).
- If you haven’t selected the Sales Tax checkbox, and then entered the amount, no tax rate will be used with all invoices created via the automation (the default tax-rate setting is not taken into account).