Manage Taxes

With Invoice2go, you can keep track of the taxes used on items and invoices, so that you stay organized as you go.

  • Tax settings are applied automatically based on your set country, but you can make changes by going into your settings and editing your tax rates. 
  • After taxes have been set up at the account level, taxes can be turned on and off at the invoice level. 
  • When creating an invoice, you can apply the taxes you’ve set up at the item level, which then will be incorporated in the invoice subtotal amount. 

Editing Taxes

iOS iPhone and iPad

On the Account level:

  1. From the side navigation menu, tap on Settings
  2. Tap on Company information
  3. Under the Currency and Tax section, tap on Tax
  4. Tap on Add tax
  5. Edit the Tax label (e.g. Tax, VAT, GST,  etc.)
  6. Tap on Rates and specify the standard tax rate, and add any additional tax rates
  7. Tap on Tax type and select whether tax is Exclusive or Inclusive 
  8. Tap on Accumulative of… and select which other taxes you would like this new tax to be accumulative of (If applicable. Accumulative taxes are able to be applied on top of one another)
  9. Toggle on or off whether to automatically apply the tax to all items
  10. Tap the back arrow in the top left corner
  11. Toggle on or off whether to apply Withholding tax and set a rate (a withholding tax is a portion of tax that will be deducted from your invoice, usually paid to the government or a third party)

On the Invoice level:

  1. Go to your invoice and tap on Edit. If this is a new invoice, the next steps will become available after you have added an item to your invoice 
  2. Scroll down to the subtotal and tap on the tax you wish to edit (VAT/GST/etc)
  3. On Tax calculations, indicate whether the tax is Exclusive (tax not included in cost of goods/services) or Inclusive (tax included in cost of goods/services
  4. Specify the Rate or add new rates 
  5. Tap Save in the top right 

Additionally, you can edit the tax rates of specific items on an invoice by tapping on the item, tapping More options, and then selecting the tax you would like to add or remove from the item. Once you have selected a rate, tap Save in the top right corner.

Android

On the Account level:

  1. From the side navigation menu, tap on Settings
  2. Tap on Company information
  3. Under the Currency and Tax section, tap on Tax
  4. Tap on Add tax
  5. Edit the Tax label (e.g. Tax, VAT, GST,  etc.)
  6. Tap on Rates and specify the standard tax rate, and add any additional tax rates
  7. Tap on Tax type and select whether tax is Exclusive or Inclusive 
  8. Tap on Accumulative of… and select which other taxes you would like this new tax to be accumulative of (If applicable. Accumulative taxes are able to be applied on top of one another)
  9. Toggle on or off whether to automatically apply the tax to all items
  10. Tap the back arrow in the top left corner
  11. Toggle on or off whether to apply Withholding tax and set a rate (a withholding tax is a portion of tax that will be deducted from your invoice, usually paid to the government or a third party)

On the Invoice level:

  1. Go to your invoice and tap on Edit. If this is a new invoice, the next steps will become available after you have added an item to your invoice 
  2. Scroll down to the subtotal and tap on the tax you wish to edit (VAT/GST/etc)
  3. On Tax calculations, indicate whether the tax is Exclusive (tax not included in cost of goods/services) or Inclusive (tax included in cost of goods/services
  4. Specify the Rate or add new rates 
  5. Tap Save in the top right 

Additionally, you can edit the tax rates of specific items on an invoice by tapping on the item, tapping more options, and then selecting the tax you would like to add or remove from the item. Once you have selected a rate, tap save in the top right corner. 

Web

  1. From the side navigation menu, click on Settings
  2. Click on Company information
  3. Under the Tax section, click on Add tax
  4. Edit the Tax label (e.g. Tax, VAT, GST,  etc.)
  5. Enter the standard rate percentage for the tax and click on Add rate to add any additional tax rates
  6. On the line labeled Tax type, select whether tax is Exclusive (tax not included in cost of goods/services) or Inclusive (tax included in cost of goods/services)
  7. Toggle on or off whether to automatically apply the tax to all items
  8. Next to Accumulative of, select which other taxes you would like this new tax to be accumulative of (If applicable. Accumulative taxes are able to be applied on top of one another)
  9. Click on Save tax 
  10. Select whether to enable Withholding Tax (a withholding tax is a portion of tax that will be deducted from your invoice, usually paid to the government or a third party)
  11. Click Save at the top right

 

Reporting Taxes

Gathering your information is half the battle when it comes to tax time, and Invoice2go makes it easy by bringing all your business reports together in one place. The Tax report helps give you an overall look at your tax totals monthly or quarterly within a given year. Easily view past invoices by month, quarter or year, and see which have been paid and which are still outstanding. With just a few taps, you can print your taxes, or send them straight to your email. 

The Tax report helps give you an overall look at your tax totals monthly or quarterly within a given year. By looking at the numbers for the past two years, notice when you are earning the most, and least, revenue. Think about when it makes most sense to stick to basic expenses or to invest in new equipment or new advertising campaigns. You can also be smart about when to stash cash to help cover expenses during the slower months.  

To view and sort your Tax Report,

  1. From the side navigation menu, click on Reports
  2. Click on Report list 
  3. Click on Report types dropdown and select Taxes
  4. You can then choose the tax year(s) and view (monthly or quarterly), and sort your columns to view taxes that have been applied to your documents. 
  5. To export yourself a copy of the report, either tap on the download arrow in the top right corner (mobile) or click Export (web) at the top right of the report, and choose whether to send yourself a CSV or PDF file of the report. The report will then be emailed to you

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Whether you’re preparing your taxes yourself or getting help from an accountant, having everything in one easy place makes your job a whole lot easier. And by taking advantage of these simple features to stay organized as you work throughout the year, you’ll cut out a lot of the stress and headaches that come with tax time.


Helpful Tips

  • Any changes made to taxes will be applied to future invoices only; historical invoices will not be affected.
  • Any products with specific tax rates set will not be updated.
  • When you run a business, there are certain services or items that you sell that might be tax eligible and paid by the customer and that money is owed to the government. Depending on where your company is located, the government may impose certain taxes at a specified rate. Invoice2go offers tax options so that you can tax your customers on the products or services that you sell. Make sure you confirm with your local government or municipality to ensure what taxes you need to incorporate into your invoices.
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