Sales taxes (individual taxes and tax groups) that you charge to customers or that you are charged by vendors can be created in Settings > Taxes and on-the-fly, while creating estimates, invoices or bills.
Learn how to:
Individual taxes: single sales taxes and rates. Individual sales taxes are used when only one tax is charged on products or services. Examples of individual sales taxes included City, County, State and Federal taxes.
Tax groups: tax groups contain two or more individual taxes. Tax groups are used when more than 1 tax is charged on products or services.
Create sales tax
Sales taxes are created to record taxes you charge to your customers and taxes you are charged by vendors.
To create a sales tax, do the following:
- In Flare's top right menu, click the Settings gear icon (1 below) and then click Sales Tax in the Settings left menu (2).
- Click the Create Tax button (3 below). The Enter Tax window opens. If you have never created taxes, you'll see a message displayed in the Taxes table "Start adding Taxes, Tax Groups by clicking the Create Tax button".
- Enter the tax name and an optional description (4 below).
- Enter a tax rate without the % sign (5 above).
- Click Save (6 above).
If you check "Recoverable" taxes on Settings > Sales Tax page (as shown below), a recoverable textbox will be made available in the new tax dialogue. Here you'd enter the portion of the tax that is recoverable.
Create sales tax groups
Tax groups are used when two or more taxes are charged on products or services—either taxes you charge your customers for products and services, or, taxes that you are charged by your vendors.
To create a tax group, do the following:
- In Flare's top right menu, click the Settings gear icon (1 below), then click Sales Tax in the Settings left menu (2).
- Click the Create Tax button dropdown arrow (3 below) and click Create Tax Group (4). The Enter Tax Group window will open.
- Enter a name for your tax group and an optional description (5 below).
- Select individual taxes that will be part of the tax group (6 above).
- To add another tax to the tax group, click the Add item link (7 below).
- Click Save (8 above).
Taxes you've created will now appear in the Taxes table:
You'll now be able to select these individual taxes or tax groups when you create estimates, invoices and bills.
- Create compound tax.