Adding tax profiles for invoicing
You can set up a set of tax profiles for use when you invoice clients.
You'll likely want to have a separate profile for each tax jurisdiction you work in. For example, if you perform work in Canada, you might create:
- One tax profile for Alberta that includes 5% GST
- One tax profile for BC and Manitoba, that includes 5% GST and 7% PST
- One tax profile for all regions that charge 15% HST
Then, you'd assign the appropriate profile to clients located in each region.
When you invoice a client, the taxes defined in their assigned tax profile will be automatically applied to invoice amounts.
To add a tax profile:
- Check that Tax Profiles permission is enabled in your Administration set.
- Go to Administration > Company > Tax Profiles, and click Add Tax Profile.
- Give the profile a name.
You might want to name it after a particular client or a jurisdiction (e.g. New York State taxes).
- Click + Add Tax, and a row appears where you can complete the fields for a single tax type. Click + Add Tax again to add more rows, if the profile requires more than one tax type.
- Click Save.
Now, client managers can assign this tax profile to one or more clients.
- You can only assign one profile per client, so be sure to include all relevant taxes
- If a tax rate has changed, or is due to change, you can include multiple rates with unique effective dates by clicking + Add
Then adding the details of the new rate
Rates effective only in the past are hidden, unless you enable the Show Past Rates option.
- You can record a tax registration number for each rate, and choose whether or not it's shown on the invoice