How do I create taxes (or fees) for products?

Learn how to create product taxes (or fees) from the Product Builder and Ecommerce Setup and how taxes (or fees) display on invoices.

Accessing the features mentioned in this article

Where can I find this feature using the top menu?

Inventory > Products > Products 

What more do I need to use this feature?

• Admin permissions to configure taxes and inventory. Restricted permission to Manage Products and Assets can be assigned independently.
  
  

Which Checkfront version supports this feature - classic items, classic products, or both?

• Your account must have access to classic products (Inventory > Products), a key feature of our classic products version of Checkfront. This feature is not available for use with classic items (Inventory > Items) in our classic items version. → Learn more about products. 
   

Do you need to create a new tax (or fee) to add to a new or existing product? If so, then this is easy to do! 

You can apply taxes (or fees) from the product's Taxes & Fees section under the Pricing tab. To set up a new tax (or fee) in this area, select + Create New.

From the Create Tax modal:

1. Enter the Tax Name. This is displayed on invoices and receipts, e.g. VAT.
2. Specify the tax Amount. This can be a flat amount ($) or a percent (%). 
3. Provide the Account Number. This optional number is displayed on invoices.
4. Apply taxes (or fees) to All customers (default), Only customers with {your county}, Only customers within {your country}, or only international customers.
5. Choose the calculation method, Compound and/or Inclusive. Compound taxes (or fees) apply on top of earlier taxes (or fees) with a lower display order. Inclusive taxes (or fees) are already included in the product's asking price.
6. Determine the Display Order of the tax (or fee) when more than one tax (or fee) is configured. This is also important for calculating compound taxes (or fees).
7. Apply To one or more Products. By default, the tax (or fee) is applied to the product in focus. You can choose to Select All products or manually choose additional products. Select None clears your selections.

Select Save when done to apply the new tax (or fee).

You may also create taxes (or fees) from the main Taxes area (Manage > Ecommerce Setup > Taxes).

Learn more about creating taxes (or fees) here: Configuring ecommerce settings for taxes

How do I edit a tax (or fee)? Once you have created and applied a tax (or fee), you can edit the tax (or fee) from the Product Builder (Inventory > Product Builder) or the Taxes tab of the Ecommerce Setup page (Manage > Ecommerce Setup).

A tax (or fee) applied to an invoice appears under the Sub-Total line, displaying the tax (or fee) name alongside its amount and account number (if included).

Do you have information about the taxes (or fees) you charge that you want to inform your Customers about? A great way to add this information is with a booking policy. Learn more about setting up a booking policy here: How do I update/edit my invoice policy?