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Setting Different Tax Rates for Invoice Line Items
Setting Different Tax Rates for Invoice Line Items

You can set different tax rates per individual line item on an invoice.

Updated over a week ago

When creating an invoice, the default assumption is that all line items will have the same tax rate. However, there are situations where different tax rates are required for specific line items.

Setup

First, enable the "Tax per line item" option on a document template.

  1. Navigate to Settings > Document Templates.

  2. Select an existing invoice template or create a new one where you want to use this option.

  3. Check the box for "Tax per line item".

  4. Set up a default tax name and value. This tax will be applied to all invoice line items by default. Choose the most common tax to simplify the setup process.

  5. Save the changes.

You are now ready to create an invoice with varying tax rates for line items.

Creating an Invoice

  1. Create an invoice as usual and save it as a draft.
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  2. Once the draft is created, you will see the default tax rate set on the line items.
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  3. Clicking on the tax value allows you to change the tax name and value for each line item. Any changes will be reflected in the invoice PDF.

How will adding the tax per line item to a template affect my existing invoices?

It will not affect existing invoices. Line items on existing invoices will retain their default tax value. However, you can edit the tax rates on these line items as needed.

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