User role required: Financial office staff and above
Region availability: For UK clients, please contact support to discuss enabling COmplex tax on your account.
The Complex tax feature gives you granular control over how tax behaves across your system. For US accounts, this is essential for combining varying regional taxes into a single rate. For UK accounts, it provides precise control over your VAT rates.
Tax components are the individual building blocks of this setup. Components allow you to define exactly what makes up a tax rate. Setting up clear tax components ensures your tax collection is accurately categorized for reporting. It also maps correctly when syncing with your accounting software.
Creating a tax component
You must create your tax components before you can assign percentages or apply them to invoices.
Click your Profile icon → Go to Settings.
Under Finance, click view on Tax components.
In the Add tax component section on the left, enter a descriptive title in the Tax component field (e.g., "State tax" or "City tax").
Click Add tax component.
Your new component will immediately appear in the Existing tax components list on the right.
Managing existing tax components
Once your components are created, you can rename, reorder, or remove them as needed from the Existing tax components list.
To edit a component: Click Edit next to the component, update the name in the text field, and click Save.
To delete a component: Click Delete next to the component, type 'delete' into the confirmation box and click Delete.
To change their display order: Click and drag a component up or down the list. This changes the order in which these components appear in dropdown menus throughout Commusoft.
If a tax component is assigned to a Tax description, it cannot be deleted. You can remove the component first, then delete it from this setting.
What happens next?
Tax components only act as labels or categories, so you do not set percentages here. You will assign specific percentages to them when you combine them into a Tax description.
Learn how to set up tax descriptions.
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