As a business, you may or may not need to charge taxes on your products and services to report back to the government.
If you need to charge taxes, they are added on a line-by-line basis in FreshBooks. This means they need to be applied to each line item when you're creating the Invoice. Follow these steps to add Taxes to your Invoices:
- Head to the Invoices section
- Click on New Invoice in the top right
- Create your Invoice as normal - adding a Client, Terms, a Due Date and any additional Notes you or your Client may need
- Add an item to your Invoice. You can do this by clicking the + Add a Line which will appear when you hover over the Invoice
- Once a line has been added to the Invoice, you'll see an Add Taxes option under the Rate column:
- Clicking on this Add Taxes link will give you the option to add a Tax to your item
- Enter in the Rate and the Tax Name. The Tax Number/ID is optional:
- Once you've entered your Tax details, click anywhere on the Invoice and the Tax will be applied:
Note: You're able to add up to two Taxes to each line item within FreshBooks.