To set up taxes, head over to Settings > Taxes.
Show prices including or excluding taxes.
You can enter the prices for your products inclusive or exclusive of taxes. The setting affects how prices are displayed on orders and documents:
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.
Applying tax profiles to products
After a product tax profile is created, you need to apply it to a product.
- View a product and head over to its Pricing page.
- Make sure the product is taxable and select the product tax profile from the dropdown.
Customer tax profiles
You can create profiles for specific customers or regions.
Booqable's tax system supports adding, replacing and compounding rates.
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).
Applying tax profiles to customers
After a customer tax profile is created, you need to apply it to a customer.
- View a customer.
- Select the customer's tax profile under the Settings section.
Set default tax profiles
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. Now, this profile is automatically selected when adding new products and customers to Booqable.