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Add Taxes

According to Benjamin Franklin, "Nothing can be said to be certain, except death and taxes". Fortunately, Shedul has covered all the tough tax calculations for you.


1. Add a new tax rate to your Shedul account

Every country and state will have its own requirements for recording taxes and Shedul will automatically calculate the tax contribution for each invoice raised. 

To add new tax rates:

  1. From the left-hand Navigation menu, go to Setup > Taxes
  2. Select the green button for Add TaxScreen-Shot-2018-06-29-at-12.06.00.jpg
  3. Name and add your individual tax rates (e.g. sales tax, VAT, PST, etc.), then Save your new taxScreen-Shot-2018-06-29-at-12.06.20.jpg
  4. Under Tax Defaults, select your Location. From there, you can apply the Default Tax rate for your Products and/or Services.Screen-Shot-2018-06-29-at-12.06.32.jpg
  5. Click Save to allocate your taxes to all products and services
  6. The final step is to Apply defaults to all items. This will automatically make sure tax calculations are made for each of your Products and ServicesScreen-Shot-2018-06-29-at-12.12.34.jpg

TIP: In case you sell certain tax-exempt products and/or services, you can adjust or remove the tax rates for these individual offerings through the Inventory and/or Services tabs.


2. Create a Tax Group for multiple taxes

You may be required to display multiple taxes on your invoices; for example, users in Canada may be required to display both GST and PST. Multiple taxes can be applied to a product or service by creating a Tax Group:

  1. From the left-hand Navigation menu, go to Setup > Taxes
  2. Select the green Add New button, then select a new Tax Group Screen-Shot-2018-06-29-at-12.48.39.jpg
  3. Add your Tax Group Name, and add as many taxes as you need to the Tax Group, then SaveScreen-Shot-2018-06-29-at-12.50.13.jpg
  4. Once saved, go to Tax Defaults and select your Location, then select which Tax Group applies to your Products and Services. Once you've made your selection, click SaveScreen-Shot-2018-06-29-at-12.54.03.jpg
  5. Select the More Options icon and select Apply defaults to all itemsScreen-Shot-2018-06-29-at-12.57.36.jpg
  6. All of your services and products will now be updated to have your new taxes applied

NOTE: Once taxes are applied, they'll be calculated on all newly created invoices, and will not be applied retroactively. 

TIP: Tax Group names are for your reference only, and will not display on invoices. However, each of the constituent taxes will display individually.


3. Configure Tax Settings

One important thing to check before issuing tax invoices is to make sure your taxes are being applied correctly. For example, in the United States, taxes are typically calculated on top of sales (taxes exclusive), whereas in many other countries, taxes are included in the sales price (tax inclusive).

In order to properly configure your tax settings:

  1. From the left-hand Navigation menu, go to Setup > Taxes
  2. Under the Tax Setting section, select Change this setting
  3. Select either Retail prices include tax or Retail prices exclude tax, depending on the law of your jurisdiction

And voila! Your taxes will now be calculated automatically with every subsequent invoice that you generate.

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