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Sales Tax Settings

Before you start invoicing, you will need to complete the following steps to set up your sales tax.    

  1. Go to Maintenance > Preferences > Company Preferences and open the Invoicing tab.

  2. Select your Tax Method from the drop-down list.

    • Tax added to invoice (United States) - Invoice total is multiplied by the tax rate to get the tax amount.

    • Dual taxes added to the invoice (Canada) - You'll choose two default tax rates. These are added together to get the total sales tax, while the sales tax rates show on the invoice as two tax lines. 

    • Tax included in the item price (Other Countries) - The tax is built into the price of each item and does not need to be added at the end of the invoice. NOTE: Australian studios should use this tax method.
    • Tax added to invoice line items (United States) - Calculates tax for each line item and then totals the individual tax amounts. If you choose this option, you will need to set the tax rate for each item in your price list. See also: Setting up a Price List

  3. Click the Sales Tax Maintenance button to open your list of sales tax/VAT rates.
    • To add a new sales tax/VAT rate, click New on the ribbon. Then enter the state, city, and the sales tax rate. Enter the rate as a percentage. For example, a tax rate of 6.5% is entered as 6.5. We recommend you also create a 0% tax line for tax exempt sales. Exit the sales tax list by clicking X at the upper right.  

  4. Choose the Default Sales Tax from the drop-down list. This can be overridden at the time of invoicing. If using the Canadian tax method, you will choose two default sales tax rates.

  5. Enter the Tax Label that should appear on your invoices.

  6. Choose a Tax Exempt Code if applicable.

  7. Check the Shipping Fees are Taxable box if you tax these fees.

  8. Click OK to save your preferences.



See also

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