This article is for:
If you're registered to pay tax with your local authority, then you can collect tax on your products and services in Timely. You can apply taxes to services, classes, products, packages and discounts. These can be applied individually, or you can apply a single tax code to all of your items. In this guide, you will learn answers to frequently asked questions related to taxes.
How to use tax with app integrations
If you are using any of the following add on integrations, you will need to import and use tax codes from that specific integration. We've included a link to the relevant guide with more information:
- Accounting | QuickBooks: Import your taxes from QuickBooks Online.
- Accounting | MYOB: Import and apply tax from MYOB.
Frequently asked questions (FAQs)
How is tax calculated on sales?
When you raise a sale, we will automatically calculate the tax contribution for each item, based on the tax rate you set for that item. You can set a listed service or product price as tax inclusive or tax exclusive.
- When a price is tax inclusive we will set the service/product price you've entered as the total and calculate the unit price (unit price = total price - tax rate)
- When a price is tax exclusive we will set the service/product price you've entered as the unit price. We will add the tax to the unit price to calculate the total (unit price x tax rate = total)
- When viewing a sale, you can see which tax code is applied in the tax column. The total tax collected will be shown on the includes tax of line
Can I add multiple taxes to an item?
While it's possible to add multiple taxes to your account, you can only apply one tax code to each item. If you live in a country/region where multiple tax codes are required, we recommend adding the secondary tax to the sale as a product. You would need to manually set the product value in each sale accordingly.
Can I remove tax on a specific sale?
Tax is applied to items directly, so it isn't possible to remove tax on a specific sale. If you offer your services/products in both taxed and tax-free circumstances, we recommend having a second list of services/products; one with tax and one without.