To add a new tax, click the Plus button . See below for an in-depth instruction in creating taxes in standalone mode.

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

To change the global default tax settings, click Tax Settings . 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   in the Action column, then click Make Inactive and click OK to confirm.

To list inactive taxes, click the Settings button  and mark the Include Inactive checkbox.

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

Creating Taxes in Standalone Mode

US Companies

After clicking the Plus button   you will see two options: Regular Tax and Group Tax.

Regular Tax

•  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 the Plus button  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. 

•  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 the Delete button .  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. 
  

 It is not possible to delete a tax once it has been set up. You can make a tax inactive either by clicking 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.

 When you edit the tax, it is possible only to change its name or make the tax inactive.

Non-US Companies

After clicking the Plus button  you will see two options: Regular Tax and Group Tax.

Regular 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. 

•  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 the Delete button .
• 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.
  

 It is not possible to delete a tax once it has been set up. You can make a tax inactive either by clicking  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.

 When you edit the tax, it is possible only to change its name or make the tax inactive.