Configuring your sales tax preferences ensures accurate financial reporting and compliance with your regional requirements.
Use these settings to enable tax on your account, define your preferred tax label (such as VAT), and automate how tax is calculated and displayed on invoices.
The Default tax state and Tax breakdown options explained further down are part of the 'Complex tax' feature. These are enabled by default for US accounts. For UK accounts, they are optional and available upon request; please contact our support team if you need them enabled.
How to access the sales tax setting
➡️ Click your Profile icon → Choose Settings → Locate Finance in the Categories menu → Click View next to Sales tax.
Set up tax (VAT)
This section controls the global activation of tax on your account.
Tick the box next to Enable tax to activate it.
Once enabled, additional configuration options will appear.
Default tax label
You can customize how the tax line item appears on your documents to match local terminology.
Enter the text you want to appear on your invoices in the Default tax label field (e.g., TAX or VAT).
Tax type
This setting lets you choose whether line items include or exclude tax by default.
Excluding tax: Tax is added on top of the line item value.
Including tax: The line item value already includes the tax amount.
Note: Changing this setting may affect how your financial records are transferred to your accounting package, based on whether it supports tax entries.
Default tax state
Select which address determines the default tax rate applied to a job.
Client address: Defaults to the client's billing location.
Job address: Defaults to the specific location where the work is performed.
Invoice address: Defaults to the address listed on the invoice.
Tax breakdown
You can control the level of detail presented to the customer on their final invoice.
Select whether you would like to show a Tax breakdown on the invoices you create using the dropdown menu.
Once you have configured your settings, click Save.
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