Multiple tax rates for single line on invoice

You can have multiple tax rates, such as federal and state tax, GST and HST for the same line on an invoice. Please contact support if you wish to enable this feature.

If the feature is enabled, you can configure multiple tax codes at different levels as explained below:

Client

A new tax code tab is introduced for clients. Here, you can add new tax codes and delete existing ones.

Edit client → tax codes

After the tax codes are saved, the tax codes breakdown is displayed under the edit client -> main tab.

Edit client → main tab

Provider

A similar tax code tab is introduced for the providers. Here, you can add new tax codes and delete existing ones.

Edit provider → tax codes

After the tax codes are saved, the tax codes breakdown is displayed under the edit provider -> main tab.

Edit provider → main tab

Worker

A new tax code tab is introduced for workers. You can select, one of the three options:

Disable tax codes (use VAT code): The assigned VAT code will be considered for tax calculations. Any saved tax codes will not be considered.
Inherit provider tax codes: The system will inherit and use the provider tax codes.
Use worker tax codes: You can add new tax codes or delete existing ones for the worker.

Edit contractor → tax codes

Placement

A new tax code tab is introduced for placements. You can select different options for sales and purchase tax codes.

Edit placement → tax codes

The sales and purchase tax codes can be added at the rate level as well as under edit placement -> general tab. If none are specified, the system inherits the placement tax codes.

Edit placement -> general

A new checkbox create separate invoices for different sales VAT/tax codes? is introduced for clients, providers, and workers under the edit client/provider/worker → advanced tab. When this option is enabled, the invoices are spilt by different sales or VAT tax codes; if disabled, invoices are consolidated based on the selected criteria.

Edit client → advanced

Advice notes

You can add or remove tax codes from advice note supplier invoices.

Advice note → supplier invoice

Payment applications

You can add or remove tax codes from payment application client invoices.

Payment application → client invoice

While creating invoices, the tax codes are considered for calculation in the following hierarchy:

Rate tax code
Placement tax code
Client (for sales tax codes) and worker/provider (for purchase tax codes)
When no tax codes are defined, the system uses the VAT code