Adding tax to an invoice

This article will show you the different ways you can add tax to an invoice.

Add tax by tax rate

Default tax rate 

If you are regularly adding the same tax rate to invoices, the most convenient way to do so is to set a default tax rate. If you have a default tax rate set then the rate will be automatically applied once you toggle sales tax on.

To turn sales tax on on an invoice go to Settings > Tax and toggle tax on. 

To set a default tax rate, see Set a default tax rate below.

Dropdown menu

To add a tax rate you have saved in the value list use the dropdown. To edit what appears in the dropdown see Add a tax rate to the value list. 

  1. Settings > Tax and toggle tax on in the invoice edit screen
  2. Select a tax rate from the dropdown menu 
  3. If your list is long you can search in the field to show a shortlist of tax rates 
  4. The tax rate will be added to the invoice once one is selected

Custom rate

If you would like to add a tax rate that is not in the value list you can add a custom rate to the invoice.  

  1. Settings > Tax and toggle tax on in the invoice edit screen
  2. Type the desired tax rate directly into the field
  3. The tax rate will be applied to the invoice once you have clicked out of the box

Automatically calculate tax

Using TaxJar’s API, you can now add the correct tax rate every time you are selling interstate. You do not need a TaxJar account to use this feature. 

  1. Add contact and artwork to the record 
  2. Click “Calculate Sales Tax” under the the total
  3. Check the Point of sale and the Delivery addresses
    1. If an address is Incomplete, click Edit and fill in the missing fields
    2. If an address is Incorrect, click Edit and amend any errors
  4. Click Confirm
  5. Tax will be added to the invoice
  6. To change the label click on the label and edit it directly on the invoice 

Note: If you would like to check the rate returned please see TaxJar's Sales Tax Calculator.

Add tax to the individual line item

 You can add tax to individual items in an invoice. 

  1. Settings > Tax and toggle tax on in the invoice edit screen
  2. Click the blue Advanced sales tax options that appears under the dropdown
  3. Click Apply tax per item
  4. Click on the pencil icon and toggle on sales tax

By address

This uses TaxJar's API to correctly calculate tax when selling interstate. 

    1. Click Calculate
    2. Check the addresses
      1. If an address is Incomplete – click Edit and fill in the missing fields
      2. If an address is Incorrect – click Edit and amend any errors
    3. Click Confirm

Note: If you would like to check the rate returned please see TaxJar's Sales Tax Calculator.

Florida State taxes: TaxJar is unable to accurately calculate tax surcharges for sales over $5000 in Florida. To avoid a miscalculation, Artlogic recommends to review your sales in Florida with an accountant that specialises in Florida State and County taxes. 

By tax rate

There are a number of ways you can add tax by tax rate. 

  1. Select a tax rate from the dropdown menu.
  2. Add a custom rate by typing the desired tax rate directly into the field.
  3. Add a custom amount by selecting Enter a custom amount in the drop down. Enter a custom amount and label.
  4. Click Add multiple tax rates to add more than one tax rate. 

Add and edit commonly used tax rates 

Set a default tax rate 

You can set a default tax rate within Core preferences. This tax rate will automatically apply by toggling sales tax on the individual invoice.

To set a default amount go to

  1. Admin > Preferences > Core preferences
  2. Invoices & Tax > Tax Settings
  3. Within the Default 'Tax code' dropdown, select a tax code
  4. If you not set up your value list or if you wish to set a specific amount that is not on the value list, select “Enter a custom rate” on the dropdown menu
  5. Enter a value into the "Default ‘Tax rate’" field

Add a tax rate to the value list

Add tax rates you regularly use to the tax value list. This will allow you to easily add tax rates to invoices. 

  1. Accounts > Value lists > Tax statuses
  2. At the bottom of the list you can add a new rate by filling in the name and the % fields 
  3. Click Save

Edit a tax rate in the value list

  1. Accounts > Value lists > Tax statuses
  2. Click the pencil icon of the tax rate you wish to edit
  3. Edit the information in the edit pane
  4. Click Save

 

 

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