Sales tax rates

If you charge sales tax, you set your rates once in Settings → Tax and then barely think about them again.

Create a rate

+ New policy: a name (“General”, “Reduced”, “Exempt”), the rate as a percentage (8.25), and optionally mark it as the company default. Most businesses need exactly one; keep more if your work spans jurisdictions or some of what you sell is taxed differently.

Where rates get used

• On items: each item in your list can be taxable at a specific rate, or left on “Company default” so it follows whatever your default is at invoice time.
• On invoice lines: every line has a Taxable checkbox and a rate picker. Picking an item fills these in; you can override per line.
• On the invoice: the tax total is always calculated from the lines. There is no invoice-level tax field to fudge, which is exactly why the Sales tax collected report can be trusted when it’s time to remit.

When a rate changes

Rates change; history shouldn’t. Archive the old policy and create the new one. Archived rates disappear from the pickers, while every invoice that used them stays exactly as it was sent.