Setting up taxes

  • Add the taxes that are applicable to your business.
  • Create a combined tax rate.
  • Enable tax rate selections in transactions.
  • Manage tax rates.

If there’s a check mark in the Visible column, you can use the sales tax when you create sales transactions. If there’s no check mark, you cannot use it in a transaction.

To create a new sales tax

  1. Go to the Settings, Business setttings.

  2. Click Sales tax.

  3. Click New Tax Rate.

  4. Enter the following information:

    • Display Name. Enter a name for the sales tax.
    • Agency. Enter the name of the tax agency where you pay the collected sales tax.
    • Percentage. Enter the tax rate.
    • Show this tax rate. Select the check box to make the tax available for transactions. Clear this check box if you are not ready to use this new tax.
  5. Click Save.

To create a combined sales tax

Note: A combined sales tax can consist of existing tax rates or you can use new tax rates. If you use new tax rates, they will be added to the Sales Tax Rates table.

  1. Click New Tax Rate and then Create a combined tax rate.

  2. Go to the Settings, Business setttings.

  3. Click Sales tax.

  4. Enter the following information: 

    • Display Name. Enter a name for the combined sales tax.
    • Components. Enter the name for each tax rate. If you want to use an existing tax rate, start entering the name and then select it when it appears. Click Add component to add another tax.
    • Show this tax rate. Select the check box to make the tax available for transactions. Clear this check box if you are not ready to use this new tax.
  5. Click Save.

Note: For combined sales taxes, the Agency name becomes Multiple. The combined percentage of each sales tax is shown in the Sales Tax Rates table.

To edit a sales tax

You can’t change the tax agency. If you have used a sales tax, the Show this tax rate check box is not available. To edit a combined sales tax, select the individual tax rates in the table and change their rates.

  1. Go to the Settings, Business setttings.

  2. Click Sales tax.

  3. Click the sales tax you want to edit.
  4. Click Update Rate.
  5. Enter the date that the rate change is effective. If there have been previous changes, you can see the different rates and dates.
  6. Enter the new rate.
  7. Click Save.

To delete a sales tax

Note: You can’t delete a sales tax that has been used.

  1. Go to the Settings, Business setttings.

  2. Click Sales tax.

  3. Click Delete next to the sales tax you want to delete.
  4. Click Delete Tax Rate.