In this tutorial you will learn how to set up sales tax for four different scenarios:

  • What to do if you don't charge sales tax
  • How to set up a single sales tax
  • How to set up combined sales taxes
  • How to set your default sales tax¬†

All of these options require you to navigate to the sales tax section of your settings as shown below.

Click the avatar in the top right corner of dashboard and select 'Settings' from the list shown.

Scroll down to the 'Sales Tax' section of the settings as shown.

If You Don't Charge Sales Tax

Select 'I don't charge tax' from the 'how do you charge tax' drop down as shown.

Scroll down to the bottom of the settings page and click the 'Save' button as shown.

How to Set Up a Single Sales Tax as the Default Rate

Click the 'Tax rates and groups' button as shown below.

Select the default sales tax for your local agency (e.g. VAT)

Edit the name and rate as appropriate, then click the 'Save and exit' button as shown.

Select 'VAT' from the drop down list as shown below.

Scroll down to the bottom of the settings page and click the 'Save' button as shown.

How to Add a New Sales Tax Rate

Click the 'Tax rates and groups' button as shown below.

Click the 'New tax rate' button as shown.

Enter the name and rate of your new tax rate then click the 'Save and exit' button as shown below.

If you would like to use this new rate as your default tax rate, select it from the drop down list shown below.

Scroll down to the bottom of the settings page and click the 'Save' button as shown.

How to Set Up a Combined Tax Rate

Click the 'Tax rates and groups' button as shown below.

Click the 'New tax group' button as shown below.

Enter a name for your new group such as GST/PST, then add the first rate (e.g. GST) in the selector and click 'Add component' as shown below.

Add the second rate in the selector (e.g. PST) and click 'Add component as shown below.

Click the 'Save and exit' button as shown.

Note: If you wish to set this combined tax rate as your default rate, select it from the drop down list under 'Default company tax rate.'

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