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Taxes settings include Basic Tax and Tax rules where taxes can be enabled and configured.

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Basic Tax Settings

Basic tax settings may be configured under [Settings] > [Company] > [Taxes] > [Basic Tax Settings].

OptionDetails
Enable TaxIf checked tax will be enabled and all new invoices whose line item supports tax will have taxes applied as per the tax rules.
Cascade TaxIf checked level 2 taxes will be applied to the subtotal plus any tax calculated from the level 1 tax. That is, this enables tax on tax.
Tax Setup FeesIf checked setup fees will be taxed.
Tax Cancellation FeesIf checked cancellation fees will be taxed.
Tax ID/VATINSet this to your Tax ID or VATIN.

Tax Rules

Tax rules may be configured under [Settings] > [Company] > [Taxes] > [Tax Rules].

OptionDetails
Tax TypeTaxes may be either inclusive (tax included in item price) or exclusive (tax not included in item price).
Tax LevelLevel 1 taxes only apply on a country level, Level 2 taxes apply on both a country and state/province level.
Name of TaxThe displayed name of the tax (e.g. Sales Tax).
AmountThe percentage of the tax. For an 8.75% tax enter 8.75.
CountryThe country the tax rule applies to.
State/ProvinceThe state/province the tax rule applies to. May only be set for Level 2 taxes.