Every country and state has its own requirements for recording taxes. Fresha will automatically calculate the tax contribution for each invoice raised, based on your personal settings.

To add a new tax rate:

1. Go to Business settings and select Taxes.
2. Click and select New Tax. 
3. Set the Tax name and Tax rate.  
4. Click Save.                                           
5. Once you’ve added all your taxes, go to Tax Defaults and click on each location to apply the default tax rate to your products and services.
6. Save changes. 
7. Click on Apply Defaults, and this will automatically apply the tax rates to all products and services.

Create a tax group for multiple taxes

You may be required to display multiple taxes on your invoices for example, users in Canada may be required to display both GST and PST. 

To create a tax group:

1. Go to Business settings and select Taxes.
2. Click on  and select New tax group. 
3. Add your Tax group name and choose which taxes you’d like to assign to this tax group from the dropdown.
4. Save changes.
5. Under Tax Defaults, click next to the location you’re looking to edit.
6. Click Edit and select your tax group to apply the default tax rate to your products and/or services.
7. Save changes. This will automatically apply to all products and services which have already been assigned to default taxes.
8. Click on next to Tax Defaults and Apply defaults to all items. This will automatically calculate taxes that are made for each of your Products and Services.

Manage your tax settings

One important thing to check before issuing tax invoices is to make sure your taxes are being applied correctly. For example, in the United States, taxes are typically calculated on top of sales (taxes exclusive) but in many other countries, taxes are included in the sales price (tax inclusive).

To manage your tax settings:

1. Go to Business settings and select Taxes.
2. Scroll down to Tax calculation where you’ll be able to see how your taxes are currently calculated.
3. Click Change this setting and select either Retail prices include tax or Retail prices exclude tax, depending on your location.
4. Save changes.

Your taxes will now be calculated automatically with every invoice you send to your clients.