The Tax Rate dialog is where new tax rate details for invoice computation can be entered, or existing tax rate details can be edited. Access the Tax Rate dialog by opening the Options dialog, click the Tax tab, and click Add to create a new tax rate, or select an existing tax rate and click Edit to edit tax rate details.

Tax Name:

Enter the tax name. This is used for display purposes.

Simple Tax Rate (%):

This is the rate to be used for invoice computations.

Combined Tax Rate:

Create a tax group composed of simple taxes.

Compounding so rate 2 is applied after rate 1

When this option is enabled, tax rate 1 is applied on item-value, then tax rate 2 is applied on top of total that has already been taxed with tax rate 1. When the option is disabled, both tax rate 1 and tax rate 2 are applied on item-value.

Show zero percent

Enable this checkbox if the user wants to print zero percent tax rates in Invoices. (Applicable in EU and UK only.)

Sales tax collected account:

Select the account you would like any sales tax collected to be allocated to.

Sales tax paid account:

Select the account you would like any sales tax paid to be allocated to.