Tax Codes

Tax codes are the tax rates you apply to invoices. Each tax code has a name (e.g. HST) and a rate (e.g. 13%). When you pick a tax code on an invoice, its rate is applied to the taxable lines — there's no rate to type on the invoice itself.

Who can use this

Tax codes are managed by Owners, Admins, and Finance users, under Manage → Tax Codes.

Adding a Tax Code

1. Go to Manage → Tax Codes
2. Click New Tax Code
3. Enter:
   • Name — e.g. HST, GST, VAT 20%
   • Rate (%) — the tax percentage, e.g. 13
   • External ID (optional) — for QuickBooks mapping
   • Inactive (optional) — hides the code from the invoice dropdown without deleting it
4. Click Create Tax Code

Importing from QuickBooks

If QuickBooks is connected, click Import from QB on the Tax Codes page to pull your tax codes. The import brings in each code's name and its rate (resolved from the QuickBooks tax rate), and links the external ID so they stay matched.

Matches QuickBooks

As in QuickBooks, the rate belongs to the tax code rather than being entered per invoice. Set it once on the tax code and every invoice that uses that code picks it up.

Using a Tax Code on an Invoice

On the invoice form, choose a Tax Code from the dropdown (it shows each code's rate). The rate is applied to every line marked taxable, and the tax line on the invoice and PDF is labelled with the code, e.g. HST (13%). Choose None for a tax-free invoice. See Invoices.

The rate in effect when the invoice is created is recorded on that invoice, so changing a tax code's rate later won't alter invoices you've already issued.

Inactivating vs Deleting

• Inactivate a tax code to stop offering it on new invoices while keeping it on past ones.
• Delete a tax code you no longer need. Invoices that already used it are unaffected (they keep the recorded code and rate).