Apply Tax on a Quote

CAUTION

We can show you how our software works, but we are not accountants and are not qualified to give tax advice. We recommend reviewing your tax settings and/or quotes with your accountant to ensure that you are charging for taxes appropriately in your area.

In this article

Background

Each item on a price list is marked as taxable or not. Each quote is assigned a tax rate which is the percent to charge on each taxable item. You might have one tax rate for everyone, or you could have a different tax rate for each city, county or state you work in. You can also assign default tax rates to each account and price list. That way every time you create a quote, your tax rate will be selected automatically.  

Steps: Assign a Tax to Products

To edit the taxable status of a product:

  1. Select Price List>View Price Lists
  2. Click on the name of the price list (Retail for example) and choose Edit Price List 'Retail'
  3. Click “Update Multiple Items” near the top of the page and select Set Taxable...
  4. Check or un-check the box for in front of each product

Steps: Rename a tax type

If your tax is named VAT, GST or anything else, you can rename the label used on the quote.

  1. Select Quote>Edit Settings
  2. Click the Sales Tax tab
  3. Click the Tax Code named “Tax” and select Rename. Now you can change the name to VAT or GST

Steps: Setup multiple tax types for a quote

For parts of the world with more complicated tax structures, it's possible to apply more than one tax to a quote.

In Canada, some regions charge a separate percentage for PST and GST, and some items may be taxed for one and not the other.

  1. Select Quote>Edit Settings
  2. Click the Sales Tax tab
  3. Rename the tax code to “GST”, and add a second tax code for “PST”. Now every tax rate will have two percentages, one for GST and one for PST.

When you edit a price list, you can set each item to be taxable for GST, and separately set which items are taxable for PST. The quote will show separate lines for GST and PST.

NOTE: When you initially associate an account with a price list it is automatically assigned the tax rate on the price list or no tax if the price list does not have a tax rate. If you subsequently add a rate to a price list we don’t automatically update the tax rate on all accounts associated with that price list.

To see which accounts need to be updated with the tax rate, create a view on the Account page that includes the tax rate.

  1. Select Account>View Accounts
  2. Click the Options... button and select fields.
  3. Select the price list-name and price list – Tax Rate and then click OK

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