Taxes

Tax is set up once and then applied for you whenever you create an invoice. You don't calculate it by hand.

Prerequisites: your tax rate(s) configured under Settings → Tax rates. See Tax rates.

How tax gets applied

• Each service or inventory item is marked taxable or not (often inherited from its category).
• When you create an invoice, decavet applies your tax rate to the taxable lines and adds a tax line.
• The tax amount is snapshotted on that invoice. Changing your tax rate later never rewrites old invoices.

Tax-exempt clients

Some clients don't pay tax (for example, certain organizations).

1. Open the client's contact and edit it.
2. In billing preferences, turn on Tax exempt and record the reason.
3. Save.

Their future invoices won't apply tax, even on taxable items.

You'll know it worked when…

A new invoice shows the right tax line for taxable items, and a tax-exempt client's invoices show no tax.

Note: Because tax is snapshotted at invoice creation, always set your rates before invoicing. If a rate was wrong, fix the rate and re-issue affected invoices rather than expecting old ones to change.

Next steps

• Tax rates
• Create an invoice