Sales Taxes

Metric.ai allows you to include sales taxes in the invoices. This article will help you learn how to use sales taxes.

• How to Enable/Disable Taxes
• Taxes Configuration
  • Change the Taxes Configuration
• How to Set the Default Tax Type
• Managing Tax Types
  • Create a Tax Type
  • Delete a Tax Type
  • Edit a Tax Type

How to Enable/Disable Taxes

Permissions needed: Edit Invoices and Edit Invoices Settings

1. Edit an Invoice.
   
   
2. Open the Settings.
   
   
3. You can set Taxes to Off/Optional/Required:
   
   
   • Off: Disable Taxes in the Edit and View modes.
   • Optional: Enable Taxes in the Edit and View modes. The invoice editor can remain empty.
   • Required: Enable Taxes in the Edit and View modes. The invoice editor cannot remain empty.
     
     
4. Click APPLY to apply the changes.

You can set Taxes settings in the invoice templates to predefine tax settings for new invoices.

Taxes Configuration

There are two types of Taxes configurations:

• Per Invoice: Set one tax type for all invoice line items.
  
  You can select a tax type from the list of organization tax types.
  
  
  
  You can input a custom tax rate by typing it in manually.
  
  
  
  You can also define line items that are applied by the selected tax.
  
  
  
  
• Per Item: Set different tax types for invoice line items.
  
  You can select a tax type from the list of organization tax types.
  
  
  
  You can input a custom tax rate by typing it in manually.
  
  

Change the Taxes Configuration

Permissions needed: Edit Invoices and Edit Invoices Settings

1. Edit an Invoice.
   
   
2. Open the Settings.
   
   
3. Set the Taxes Configuration to Per Invoice/Per Item.
   
   
4. Click APPLY to apply the changes.

You can set the Taxes configuration in the invoice templates to predefine tax settings for new invoices.

How to Set the Default Tax Type

Permissions needed: Edit Invoices and Edit Invoices Settings

1. Edit an Invoice.
   
   
2. Open the Settings.
   
   
3. Set the Default Item Tax.
   You can select a tax type from the list of organization tax types, or you can input a custom tax rate by typing it in manually.
   
   
4. Click APPLY to apply the changes.

The selected tax will be applied to all new line items. You can set the default tax type in the invoice templates to predefine tax settings for new invoices.

Managing Tax Types

Create a Tax Type

Permissions needed: View Organization Settings and Edit Organization Settings

1. Select Settings from the left-side menu.
   
   
2. Open Invoicing.
   
   
3. Click the +ADD button on the Tax Types list.
   
   
4. Input the Name (this will be displayed on the invoices), Tax Rate, and Description (optional).
   
   
5. Click the Save button.

Delete a Tax Type

Permissions needed: View Organization Settings and Edit Organization Settings

1. Open Settings > Invoicing.
   
   
2. Click the cross button on a Tax Type.
   
   
3. Click the Save button.

Note: Deleted Tax Types will be kept for invoices previously created as a Custom Tax Rate.

Change a Tax Type

Permissions needed: View Organization Settings and Edit Organization Settings

1. Open Settings > Invoicing.
   
   
2. Update the Name, Tax Rate, or Description.
   
   
3. Click the Save button.

Note: Editing a tax type will also change it on invoices previously created.