Taxes on invoices: your tax rules and Stripe Tax

Under Taxes in the invoice settings, add a rule for each tax you charge: a name, a rate, the country, and optionally a region and the start of a postal code. Every rule that matches the client's billing place applies (a state and a county together), and none is charged on another.

• Goods or services: a rule can apply to everything, to goods only or to services only. Goods are lines picked from Inventory, lines added with Add sold items, and quote lines that name an Inventory item. Everything else is a service.
• Included in the price: an inclusive tax (like VAT shown inside a price) is shown on the invoice but not added to the total.
• The client's place is set on the CRM Billing panel (country, region, postal code). A client with no country keeps your workspace's single tax line, and the draft says Add the client's country until you do. A client whose country has no rule gets no tax.
• On a draft, Taxes beside the total lets you pick the rules by hand; that choice sticks. A draft that uses your rules does not show the single Tax label and rate fields, because they would not apply.

Stripe Tax

With Stripe connected, the Stripe Tax switch asks Stripe for the tax right before an invoice is numbered and puts Stripe's figure on it. Stripe Tax must be set up in your Stripe account. If Stripe cannot work with the client's address, the send is refused with a sentence; it is never sent without tax. Turning the switch off means the next send uses your rules again.

Automatic payments

A plan paid automatically follows the same tax as a one-off invoice: your rules for the client's place, or Stripe Tax. The subscription in Stripe carries one tax item per tax, and each period's invoice in Navalo carries exactly the same taxes, so what Stripe charges and what Navalo shows agree. When you change a rule, the switch or a client's place, running subscriptions are updated for their next payment. If Stripe Tax cannot price a client's subscription, the people who bill clients are told and the plan bills by link until it is fixed.

QuickBooks and Xero

Invoices sent to QuickBooks or Xero carry one tax line per tax, with its rate. A tax included in the price is moved out of income into its own tax line. In Xero, an invoice with a single tax uses Xero's matching tax rate when there is one.