How to Apply Tax on an Invoice

Overview
Choose the correct tax rate when adding line-items to an invoice.

Steps

1. In Finance > Invoices, click Create Invoice or edit an existing draft.

2. Under Items, add or select a product.

3. In the Tax column dropdown, select your rate (e.g. “VAT: 8%”).

4. The Amount and Total fields recalculate automatically.

Tips

• Use Calculate Tax setting (Before / After Discount) in Settings > Finance Settings to control whether discounts apply to pre- or post-tax amounts.

• Show or hide tax breakdown on the PDF via the “Show Tax number on invoice” toggle in Finance Settings.

Troubleshooting / FAQs

• Q: Tax column is blank or “Nothing selected.”

  • A: You must first define a tax rate under Settings > Tax Settings.

• Q: Total doesn’t include tax.

  • A: Ensure “Show Tax” is enabled in Finance Settings > Invoice Settings.