Step 1: Switch tax on#

Open Settings > Tax Configuration and turn on Charge tax. Decide whether the prices you set include tax (tax is shown inside them) or not (tax is added on top).

Step 2: Add the rules#

Open Tax Rules. Each rule has a level (1 or 2), a name such as "VAT" or "GST", a country or "All countries", an optional state, and a rate. For each level, the rule that fits the client best applies: a state rule wins over a country rule, which wins over "All countries".

Use level 2 for a second tax, such as a provincial tax, and turn on Level 2 tax is charged on top of level 1 if the second tax is compound.

Step 3: Decide what is taxed#

Choose whether domains, late fees, billable items and lines added by hand are taxed. Each product and add-on has its own Tax is charged switch.

Step 4: Tax numbers and exemptions#

Turn on Ask clients for their tax number and set its name, such as "VAT number". Clients who should not pay tax can be marked tax exempt on their profile.

Step 5: Check an invoice#

Create a test invoice for clients in different countries and check the tax lines. Tax names and rates are stored on each invoice, so changing a rule later never alters old invoices.