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How to set up taxes
How to set up taxes

Learn how to take the stress out of setting up product and customer taxes in Booqable.

Catrin Donnelly avatar
Written by Catrin Donnelly
Updated over a week ago

Taxes are one of the first tools to be set up in your Booqable account, and is one of the many features you can learn, set up, and never have to worry about again.

Follow the article below to learn how to easily set-up taxes to automate the pricing of your products in Booqable.

How it works

How taxes will work in your account depends on the following:

  • Whether you need different tax rates for different customers, due to being located in different states for example.

  • Whether you need different tax rates for different types of products.

If the first sentence is true, you will need to create customer tax profiles, to be assigned to your customers.

If the second sentence is true, you can create one or more product tax profiles to assign to your entire inventory, or individual product.

To set up taxes, head over to Settings > Taxes in your Booqable account.

1. Show prices to include or exclude taxes

You can enter the prices for your products to be inclusive or exclusive of taxes. This setting affects how your product prices, and taxes, are displayed on both orders and documents.

2. Set up product tax profiles

You can create different product tax profiles and assign them according to the tax requirements of a product. For example, some products might be taxed at a different rate, or not at all.

The tax rates in the profile are charged over a product when it's added to an order.
An order's total tax rate is the sum of all product taxes on that order.

3. Set up a default tax profile

If the same tax rate applies to the majority of your products, or if most of your customers are from a specific location, you can mark tax profiles as the default.

  1. In Settings > Taxes, hover your mouse over the product tax profile (or customer tax profile) you have created.

  2. Click Make default.

This profile is now automatically selected when adding new products, and customers, to Booqable.

4. Apply a tax profile to individual products

This method is helpful if you need different tax profiles, for different types of products. After a product tax profile is created, you need to apply it to a product.

  1. View a product and head over to its Pricing page.

  2. Make sure the product is taxable and select the product tax profile from the dropdown menu.

5. Create a customer tax profile

You can create profiles for specific customers or regions, which is helpful if you accept customers and rental orders from different states or countries.

Booqable's tax system supports adding, replacing, and compounding rates.

  1. Name your customer tax profile for your rental team to see.

  2. Under Tax description, name your customer tax profile with the label your customers will see.

  3. Add the tax rate you wish to be applied to these group of customers.

  4. Select the Method.

๐Ÿ’กNote: A regional tax rate can have one of the following rate types:

  • Add to: Each tax rate is calculated over the order total (excluding taxes) and individually added to the order total.

  • Compound: The tax is calculated over the order total, including product taxes (tax over tax). This method is used in some countries like Canada.

  • Replace: Removes product taxes and calculates tax over the order total (excluding taxes).

6. Apply a customer tax profile to a customer

Customer tax profiles need to be manually assigned to customers in the Customer page of your Booqable account.

  1. Click on a customer.

  2. Select the customer's tax profile, unter the Tax profile drop down menu.

You're all set!

You have now successfully learned how to set up taxes in Booqable.

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