Add and Manage Sales Tax Rates
In this article:
Background
If your business is required to charge sales tax based on your location or the location of your customers, you can manage multiple sales tax rates to use when you create invoices and credits for your customers.
How to Add a New Sales Tax Rate
First, you will need to add at least one product or service.
To add a new sales tax rate, ensure you have at least one product or service added to your account. Then, follow these steps:
- Go to Settings > Accounting > Customer Invoices > Sales Tax Rates.
- Select “Add New.”
- Complete the Name and Rate fields.
- Click the star to “Default” this as your default rate.
- Click “Save.”
This new sales tax rate will automatically apply to invoices you create. You can adjust the sales tax rate directly on an invoice, if needed. You can also add new tax rates while creating an invoice. For details, see Invoicing Your Customers.
How to Edit a Sales Tax Rate
- Go to Settings > Accounting > Customer Invoices > Sales Tax Rates.
- Click the “Edit” icon next to the rate you wish to update.
- You can make changes to the Name or Rate.
- If you update the rate, the old rate will become inactive.
- Click “Save.”
The changed rate will not be applied to previous invoices. Any invoices will reflect the sales tax rate in effect at the time the invoice was created.
To view previous or inactive rates, toggle the “Show Inactives” on the Sales Tax Rates screen.
How to Delete or Inactivate a Sales Tax Rate
- Go to Settings > Accounting > Customer Invoices > Sales Tax Rates.
- Locate the sales tax rate you want to delete.
- Click the trash can icon at the end of the row.
💡 Important: If the sales tax rate has been used on any customer invoice or credit, it cannot be deleted, you can inactivate this rate instead by unchecking the “Active” box.
To view inactive rates, toggle the “Show Inactives.”
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