This article explains how clients can add sales tax to invoices, including VAT, GST, or HST, depending on their configured tax label.
The tax label displayed in the app (e.g., VAT, GST, or HST) depends on the client’s tax configuration and will appear consistently across invoices, reports, and tax-related screens.
Only clients can make tax adjustments to an invoice, not contractors.
How to Add a Tax Percentage to an Invoice
✅ Step 1 -Select the contractor
From the homepage, click the People icon followed by the People tab. Select the contractor.
✅ Step 2 - Click the option Payments, expenses & work submission
✅ Step 3 - Select Add sales tax
- Click Add next to Sales taxes.
- Select the tax type (VAT, GST, or HST).
- Enter the tax percentage (%).
If the tax should only apply once, clients can remove it in the next cycle or add it as a one-time adjustment instead.
✅ Step 4 - Add the percentage
The percentage is automatically calculated based on the total invoice amount. If a bonus or other adjustments are added, the total will be recalculated accordingly.
If the client finalizes and pays an invoice and then adds new line items later in the same billing cycle, those items will generate a new invoice. The tax percentage will also be applied to this new invoice automatically, since it is recurring.
On this new invoice, clients can remove, edit, or update the percentage if needed.
Frequently Asked Questions
[ACCORDION] Can the tax sales be removed?
Yes. By going to the contractor's Payments, expenses & work submission and clicking on the added sales tax, you'll have the option to remove it.
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