Taxes are part of doing business, whatever your industry. Managing them well matters for staying compliant and keeping your finances in order. One way to do this is by adding taxes directly to your products or invoices.
How to Manage Taxes
You can manage your taxes by adding them directly to products or invoices, keeping a record with every sale. How you add them depends on the type of tax you need, but start by going to the Settings tab inside the Payments section and selecting the Taxes option on the left.
Include Tax in Prices
You can specify whether product prices are tax-inclusive or tax-exclusive, so the right tax convention is applied. This setting applies to all products within this section. If no selection is made, Tax Exclusive is the default.
Manual Taxes
This lets you create taxes for non-standardised products or businesses outside the US. To do so, click +Add Tax.
A pop-up will open where you can enter the tax name and percentage, plus any additional information. Once filled in, click Add to save it.
Automatic Taxes
This feature automatically calculates sales tax based on the customer's address and is designed for businesses in the US. To set it up, toggle Enable automatic sales tax, then select your product category for the tax percentage.
Then select the States you do business with, check the box to accept the Terms of Use, and click Save.
Adding Taxes to Invoices
Once your taxes are set up, you can add them to invoices by clicking Add Tax for manual taxes, or toggling automatic taxes within the invoice builder. Adding taxes this way applies them to all products in the invoice.
📌NOTE: Automatic taxes require contact information for the country, state, and postal code.
To add taxes to a specific product, click the Add Tax button next to that product.
This opens a menu where you can choose from your saved taxes. Adding tax manually lets you apply different rates to individual products, while automatic taxes apply to the whole invoice. Once done, click Save.
To apply taxes to all products in the invoice, click the Add Tax button below the subtotal section, configure the details, then save.
Complete the invoice as normal and you're done. With taxes tracked directly in your account, it's easier for both you and your accountant.
✍️Important Notes
Existing products default to the global tax settings, but you can change individual products to use their own settings. New products also follow the global settings, though this can be adjusted during or after creation. This gives you the flexibility to manage taxes in a way that works for your business.