As a business, you may or may not need to charge taxes (like HST, GST, VAT, ABN or more) on your products and services to report back to the government.
If you need to charge taxes, you can add them to any line item on your Invoice. If there are two or more line items, you'll see the option to apply taxes to all line items.
Follow these steps to add a Tax to your Invoices:
- Go 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, and if needed, the Tax Number/ID (which is optional), or check off the box next to an existing Tax
- Next, if you've added two or more line items to your Invoice, you'll see the option to Apply taxes to all line items, check this box off if you'd like
- Click on Apply Taxes to save the changes
- You'll now see your Tax applied to the line item(s), and the breakdown under the Subtotal of your Invoice.
- You're able to add up to two Taxes to each line item within FreshBooks
- The Tax must be created on an Invoice in a web browser first before you can use the same Tax on the iOS or Android mobile app
If you ever need to edit or remove Taxes, use the steps above and instead, uncheck the box next to the Tax you want to remove and check off any boxes next to other Taxes you want to add and click Apply Taxes. If no boxes were checked off, Taxes will no longer be applied to the Invoice, or if you selected different Taxes, those will now appear.