Configuring Tax Rates and Components

Open Settings > Tax Rates. This area requires Full Access and Manage Rates.

Tax Rates stores the rates used by invoice defaults. Enter rates approved by your organization's finance team; these fields configure calculations rather than determine tax obligations.

Rate identity

Name: required label shown in selectors.
Country: required two-letter country code.
Tax Type: a descriptive category.
Reference ID: an optional lookup code.
Description: internal notes.
Active: controls availability.
Workspace fallback default: identifies the fallback rate for supported default selection.

Components

At least one component is required. Use Add Component, enter each component's name and Rate, and choose Compound where appropriate. Compound components calculate on top of prior rows, so component order matters. Review the displayed Effective values and combined result before saving.

Save and apply

Create a new rate or edit an existing rate.
Complete the identity and component settings.
Save and review the rate in the intended invoice-item or client setup.
Verify the tax calculation on the invoice before sending it.

Rates already in use

Once a rate is used on invoices, its country and rate components are locked; metadata can still be updated. Create an appropriate new rate for a changed calculation instead of expecting old invoice calculations to be rewritten.