How do I configure taxes for my invoicing?
Before issuing invoices, make sure your tax settings comply with the tax regulations applicable in your province. Incorrect settings may result in calculation errors or affect the compliance of your invoicing.
Once configured, taxes will be automatically applied to taxable services billed to your clients.
Configure taxes for your invoices
To configure the taxes that apply to your invoices:
- Go to Settings > Finance > Fees and taxes.
- In the Taxes section:
- Select the preconfigured Canadian taxes that apply to your situation.
- Or manually add your taxes by entering their name and rate.
- If needed, enable the Compound option for taxes added manually.
- Click Save.
What is a compound tax?
A compound tax is a tax that is calculated on an amount that already includes another tax. This calculation method may be required in certain Canadian provinces, depending on applicable tax regulations. When enabled, the second tax is calculated on an amount that already includes the first tax.
Important for professionals practising in Quebec: In Quebec, GST and QST must be calculated separately. Do not enable the Compound option, as this will result in incorrect tax calculations on your invoices.
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