Tax Settings

Configure tax rates, tax calculation rules, and exemptions to ensure accurate tax collection on your invoices and estimates. RAD Repairs supports flexible tax configurations for various jurisdictions and business requirements.

Overview

The Tax Settings page in Admin Settings allows you to configure how taxes are calculated and applied throughout RAD Repairs. Proper tax configuration ensures compliance with local tax laws and accurate financial reporting.

Adding Tax Rates

Create new tax rates to apply to your products and services. You can have multiple tax rates for different purposes or jurisdictions.

Tax Rate Names and Percentages

Choose clear, descriptive names for your tax rates to easily identify them when creating invoices. The percentage you enter will be applied to the taxable amount.

Example Name	Rate	Use Case
Sales Tax	7.00%	General state/local sales tax
State Tax	6.25%	State-level sales tax
County Tax	1.50%	Additional county sales tax
City Tax	0.75%	City or municipality tax
VAT	20.00%	Value Added Tax (UK, EU)
GST	10.00%	Goods and Services Tax (AU, CA, NZ)
HST	13.00%	Harmonized Sales Tax (Canada)

Default Tax Rate

Set a default tax rate that will be automatically applied to new invoices and estimates. This saves time by pre-selecting your most commonly used tax rate.

Setting the Default Tax Rate

1. In Tax Settings, locate the tax rate you want to set as default
2. Click the Set as Default button or toggle next to that rate
3. The default rate will be indicated with a checkmark or "Default" badge
4. New invoices will automatically use this rate unless changed

When No Default is Set

If no default tax rate is configured:

• New invoices and estimates will start with no tax applied
• You must manually select a tax rate from the dropdown
• This is useful if you frequently invoice tax-exempt customers

Per-Item Tax Settings

Configure tax behavior at the individual product and service level for more granular control over tax calculation.

Product and Service Tax Configuration

Each product and service in your catalog can have its own tax settings:

Setting	Description	Example Use Case
Taxable	Item is subject to tax (default for most items)	Computer parts, accessories, standard repairs
Non-Taxable	Item is never taxed regardless of invoice settings	Gift cards, insurance deductibles
Override Rate	Use a specific tax rate instead of the default	Items subject to special tax categories

Configuring Item Tax Settings

1. Go to Products & Services from the main menu
2. Edit the product or service you want to configure
3. In the Tax Settings section, select the appropriate option
4. Save the changes

Invoice-Level Override

When creating an invoice, you can override the tax setting for individual line items:

• Click the tax toggle next to any line item
• Toggle off to make that specific item non-taxable
• This override applies only to the current invoice

Tax-Exempt Customers

Mark customers as tax-exempt when they qualify for tax exemption, such as nonprofit organizations, government agencies, or resellers.

Setting Up Tax-Exempt Customers

Tax Exemption Indicators

• Tax-exempt customers are marked with a badge in the customer list
• When creating an invoice, a notice appears indicating the customer is tax-exempt
• The invoice will show "$0.00" for tax with a note "Tax Exempt Customer"

Tax Reporting

Generate comprehensive tax reports to track collected taxes and prepare for tax filing.

Available Tax Reports

Report	Description	Useful For
Tax Summary	Total taxes collected by rate for a date range	Quarterly/annual tax filing
Tax Detail	Line-by-line breakdown of all taxable transactions	Audit preparation, reconciliation
Tax by Customer	Taxes collected grouped by customer	Customer billing verification
Exempt Sales	All sales to tax-exempt customers	Exemption documentation, audits

Generating Tax Reports

1. Navigate to Reports from the main menu
2. Select Tax Reports from the report categories
3. Choose the report type you need
4. Set the date range (start and end dates)
5. Optionally filter by tax rate or location
6. Click Generate Report
7. Export to PDF or CSV for record-keeping

Multi-Jurisdiction Taxes

If your business operates in multiple locations or serves customers in different tax jurisdictions, RAD Repairs supports complex multi-tax scenarios.

Compound Taxes

Some jurisdictions require multiple taxes to be applied (e.g., state + county + city). Configure these as separate tax rates and apply them together:

1. Create a separate tax rate for each jurisdiction (State, County, City)
2. When creating invoices, select all applicable tax rates
3. Each tax is calculated on the subtotal and shown separately
4. The total reflects all taxes combined

Location-Based Taxes

If you have multiple shop locations with different tax rates:

• Create tax rates specific to each location (e.g., "Downtown Location Tax", "Mall Location Tax")
• Assign default tax rates per location in Admin Settings > Locations
• Invoices created at each location will use that location's default rate

Customer Location-Based Taxes

For businesses that charge tax based on customer location rather than shop location:

• Create tax rates for each jurisdiction you serve
• When creating an invoice, select the appropriate tax rate based on the customer's address
• Consider adding notes on the customer profile about their applicable tax rate

Frequently Asked Questions