Taxes

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Tax Settings

If you run HandiFox as a standalone system, you can review, add and change taxes you use in transactions by clicking Taxes on the Settings page. Otherwise, taxes are governed by your QuickBooks company settings.

Taxes button on the Settings page
Taxes Page in the Web App






















To add a new tax, click Hfo-plus-button.png. Here is an in-depth instruction: Creating Taxes

To change an existing tax, click Edit in the corresponding row of the list.

To change the global default tax settings, click Taxsettingsbutton.PNG Here you can:

  • For US companies: set if items and/or customers are taxable by default and choose the default tax for customers.
  • For Non-US companies: select the default tax for customers, the default sales tax for products, and the default purchase tax for products among your existing taxes, and choose the default tax rate selection.

To make a tax inactive, click Hfo-dropdown.png in the Action column, then click Make Inactive and click OK to confirm.

To list inactive taxes, click Hfo-gear-button.png and mark the Include Inactive checkbox.

You can search taxes by their name using the search field on top.

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Creating Taxes in Standalone

US Companies

After clicking Hfo-plus-button.png you will see two options: Regular Tax and Group Tax.

Regular Tax

HFO create US regular tax.png

  • First, enter the name of your tax, here you can use up to 100 characters.
  • Next, you need to set up a tax agency. Tax agency is any governmental agency that you pay your taxes to. You can create a new one by clicking HFO blue plus.png and typing the name of the tax agency and then clicking OK. You can also select among agencies that you have already created by clicking on the dropdown and scrolling through the list or typing the name of the agency.
  • Finally, set up the rate of your tax.
  • Click Save when you are done.

Group Tax

Group taxes may come in handy if you need to apply several taxes at once, for example a state tax and a local tax.

HFO create US group tax.png
  • First, enter the name of your group tax.
  • Next, select at least 2 regular taxes that you want to combine in a group tax. Click on the dropdown to select among existing regular taxes. Click on Add Tax if you need to add more than 2 taxes to the group (up to 5 taxes). Please note that you cannot add the same regular tax more than once. If you want to delete a line, simply click on HFO recycle bin.png You will see the total tax rate above the list of taxes, which will be recalculated based on regular taxes that you add.
  • Click Save when you are done.
NOTE: It is not possible to delete a tax once it has been set up. You can make a tax inactive either by clicking Hfo-dropdown.png in the action column and clicking Make Inactive or editing the tax. It is not possible to make a tax inactive if it has been set as default in the Tax Settings.
NOTE: When you edit the tax, it is possible only to change its name or make the tax inactive.


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Non-US Companies

After clicking Hfo-plus-button.png you will see two options: Regular Tax and Group Tax.

Regular Tax

HFO create NON-US regular tax.png
  • First, enter the name of your tax, here you can use up to 100 characters.
  • Next, you need to set up a tax agency. Tax agency is any governmental agency that you pay your taxes to. You can create a new one by clicking HFO blue plus.png and typing the name of the tax agency and then clicking OK. You can also select among agencies that you have already created by clicking on the dropdown and scrolling through the list or typing the name of the agency.
  • Finally, set up the rate of your tax. You can choose to add Sales or Purchase rates, or both at once. Enable the necessary rate and enter the tax percent.
  • Click Save when you are done.

Group Tax

Group taxes may come in handy if you need to apply several taxes at once, for example a state tax and a local tax.

HFO create NON-US group tax.png
  • First, enter the name of your group tax.
  • Next, select at least 2 regular taxes that you want to combine in a group tax. Click on the dropdown to select among existing regular taxes. Click on Add Tax if you need to add more than 2 taxes to the group (up to 5 taxes). If your regular tax has both sales and purchase rates, you can choose which one to add, since they will be displayed separately. Please note that you cannot add the same regular tax more than once. If you want to delete a line, simply click on HFO recycle bin.png
  • You need to select what each tax line will apply to. The first regular tax in the list applies to Net amount (meaning the price/cost of the item before taxes). Other taxes can apply to Net amount as well, or Tax amount (meaning the tax will only be applied to the amount of tax calculated from the previous line) or Net + Tax amount (meaning the tax will apply to the gross price/cost of the item including taxes). You will see the total sales tax rate and total purchase tax rate above the list of taxes, which will be recalculated based on regular taxes that you add.
  • Click Save when you are done.
NOTE: It is not possible to delete a tax once it has been set up. You can make a tax inactive either by clicking Hfo-dropdown.png in the action column and clicking Make Inactive or editing the tax. It is not possible to make a tax inactive if it has been set as default in the Tax Settings.
NOTE: When you edit the tax, it is possible only to change its name or make the tax inactive.


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Working with Taxes

US Companies

For standalone companies, please refer to the section above for Tax Settings. If your company is connected to QuickBooks Online, then taxes are set in QuickBooks and synchronized with HandiFox.

If taxes are enabled (in HandiFox or in QuickBooks), then you are able to:

  • Manually select the tax code in Sales Transactions.
  • Set the default tax for a customer or define their tax exemption reason (the latter is available if your company is connected to QuickBooks Online).
  • Manually define if the item in a sales transaction is taxable or not by checking/unchecking the Tax box.
  • Define in the item's settings if it is taxable or not by default when added to a sales transaction.


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Non-US Companies

For standalone companies, please refer to the section above for Tax Settings. If your company is connected to QuickBooks Online, then taxes are set in QuickBooks and synchronized with HandiFox.

In standalone Non-US companies, you can select the default tax for customers, the default sales tax for products, and the default purchase tax for products among your existing taxes.
Regardless if you run HandiFox as standalone or with QuickBooks Online, you can choose the default tax rate selection in the company settings. You can also set both sales and purchase tax in the settings of each item separately, and select a sales tax in the settings of each customer.

Taxes in the New/Edit Item Screen



In the settings of the item, you can define whether the item is inclusive or exclusive of tax by checking the Inclusive of tax or Inclusive of purchase tax boxes. Next, in the dropdown menus Tax and Purchase tax you can select among your existing taxes which would apply to the item by default.
Taxes in the New Sales Order Screen


Depending on your company's default tax rate selection, you will see different items' rates and amounts in transactions. There are three available settings: Exclusive of tax, Inclusive of tax and Out of scope. Here is a break down of how the items' rates are calculated:

Item Tax Setting Default Tax Rate Selection
Exclusive of Tax Inclusive of Tax Out of Scope
Exclusive of Tax price/cost price/cost + tax price/cost
Inclusive of Tax price/cost - tax price/cost price/cost - tax


If your default tax rate selection is set to Out of Scope, then you won't be able to select taxes in transactions. Otherwise, you can use the Tax dropdown of each item to manually select among the existing taxes, thus influencing the Total and Tax Total of a transaction.

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