When creating an invoice, the base assumption is that you will have the same tax rate for all line items on the invoice. However, there are situations where you will need to set a different tax rate on one or more line items.
The setup
First, we must turn on the "Tax per line item" option on a document template.
Go to Settings - Document Templates. Select an existing invoice template, or create a new one where you want to use this option.
Tick the checkbox "Tax per line item".
You can set up a default tax name and value. This tax will be added to all invoice line items by default. Add the most common tax here so you have less work setting up the correct taxes on the invoice line items.
Save the changes.
You are ready to create an invoice with different line item tax rates.
Creating an invoice
Create an invoice as usual. Once the draft is created, you will see that your default tax rate has been set on the line items:
Clicking on the Tax value (25 % in the above case), you can change the name and value of the tax for this line item.
If you change this value, the invoice PDF will also be updated as appropriate:
FAQ
How will adding the tax per line item to a template affect my existing invoices?
It will not. Line items on existing invoices will retain the default tax value. However, you can edit the tax rates on these line items as required.