How do I add taxes?

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 add_new.png 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.

PRO TIP: If any of the products or services you offer are tax-exempt, you can adjust or remove the tax rates in your Inventory and on individual 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 add_new.png 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 three_dots.png 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 three_dots.png 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.

NOTE: Once taxes are applied, they'll be calculated on all newly created invoices. They cannot be applied to invoices that have already been issued.

PRO TIP: Tax group names are for your reference only, and won’t display on invoices. However, each of the taxes you create will display individually.

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.

NOTE: Changing the way your taxes are calculated will have a big impact on your sales. Make sure you understand how taxes should be applied in your country.

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