Taxable vs Non-Taxable Products (Services)

Self-Hosted | v5
1

Hello friends. Trying to setup white label V5 and generate our first test invoices.

Here in the USA (California), products are taxable and services are not taxable. Looking for an option to categorize each product either “Taxable” or “Non-Taxable”. When preparing invoices, it should calculate the invoice tax rate on all taxable products and add no tax for the non-taxable products (services). Setting the tax rate on each product is not practical because the tax rate varies depending on the customer’s city and county. How can this be accomplished?

1 Like
2

Hi,

I don’t believe this is currently supported in the app, feel free to create an issue here to request the feature:

3

Yes I too echo this feature would be great to have. As a consultant we have consulting hours that are taxable and some that are not taxable. In quickbooks when invoicing you are able to specify individual line items as non-table or taxable. Then for non-table consulting hours we can simply flag it and it will not get calculated in the overall tax calculation. With IN it is possible for us but we would need to bring up the “consulting” invoice and change the overall tax to non-taxable for the entire invoice and then add the tax rate into each line item. This works for us but it is rather cumbersome and prone to use error. Just FYI on how we would use it.

4

Have you guys done anything about this? I have same issues.

5

We’ve added the ability to set products as tax exempt however it’s designed to be used with the new tax calculation feature. You can enable it on Settings > Tax Settings in the latest version of the app.

6

i’m running version 5.8.51 and i’ve enabled the calculation feature selected my state and adjusted the tax rate, I have product with tax-exempt and Physical Goods when I click save it is adding tax to both items

suggestions?

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@david do you have any ideas?

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@mcolvin

Can you advise.

company country/state.
client country/state

options selected in calculate taxes.

on the invoice screen, is the tax exempt dropdown selected for the exempt product?

If i can get enough information to recreate the issue, i can test this further.

9

I’m not sure what I have going on, now it’s not calculating anything

here is my backup file, it’s a test company so no real data

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@mcolvin

these files are removed after an hour by default, can you dm to me please

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@david Message sent with a google drive link as it wouldn’t allow me to attach the file

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Looks like one small step missing here.

You need to select the subregions you wish to apply taxes to.

If you use Tax ALL for US, or select the individual states you wish to tax, the taxes will appear as expected.

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I’m not sure why, but i have that setting enabled, but I guess it’s not saving or enabling, as when I backup/restore it’s not on, as your screenshot would suggest.

I have invoiceninja is installed via cloudron, I can create access for you if you’d like

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@mcolvin

If you are not using the ZipTax API, then the app will not know whether services are taxable (as it requires an exact address to determine things like origin or destination taxes)

In this case, if you are using the manual version, you’ll want to set labor to Tax Exempt.

You can also manually adjust any of the line item taxes on the fly whilst editing.