Setting up tax rates

Save the tax rates you charge once, then pick them on invoice lines and booking services. CoreHue works out the tax and shows it clearly to your client.

Adding a tax rate

1. Open Payments → Settings → Tax rates.
2. Choose Add tax rate.
3. Enter a Name. It appears on invoices, so use what your client expects to see, like "VAT 20%" or "Sales tax 8.875%", not "Rate 1".
4. Enter the Rate (%). Type 8 for 8%. It has to be above 0 and below 100.
5. Turn on Price includes tax if the prices you enter already contain the tax. Leave it off to add tax on top.
6. Turn on Set as default ("Applied to new line items.") if most of your work is taxed.
7. Choose Save.

The list shows each rate with its Rate, whether it's Inclusive, and which one is the Default.

Inclusive or on top

• Off: tax is added to the price you enter. A 100 line at 20% bills 120.
• On: the price you enter already includes tax. A 100 line at 20% bills 100, of which 16.67 is tax.

Getting this wrong means undercharging by the tax or billing more than you quoted, so double-check it when you create the rate. See Adding taxes and discounts.

Using your rates

• On invoices, pick a rate per line, so one invoice can mix taxed and untaxed items.
• On booking services, attach a rate and the invoices those bookings create carry it automatically. See Pricing, deposits and payment deadlines.

The second one is worth setting up. Invoices created by bookings are exactly where forgotten tax slips through.

Editing a rate

Choose the pencil on a rate to change it. Invoices you've already created keep the rate they were created with, because an invoice records what you charged at the time. New invoices use the updated rate.

Deleting a rate

Choose the bin icon on a rate to delete it. It's removed straight away, without a confirmation.

Existing invoices aren't affected: each line keeps the rate it was created with. Booking services and add-ons that used the rate just stop adding tax. You won't get a warning, so check those services after deleting a rate.

What your client sees

Each taxed line shows its amount, and the totals show the tax by rate name, so your client can see exactly what they're paying in tax.

What CoreHue doesn't do

It applies the rates you set and keeps the record. It doesn't tell you which rate applies, whether you need to register, or when to file. Tax depends on your country and the work you do, so ask an accountant if you're unsure.

Frequently asked questions

Can I have more than one tax rate?

Yes. Add as many tax rates as you need under Payments → Settings → Tax rates, for example a standard rate and a reduced rate, and pick the right one on each invoice line.

Can I apply two taxes to one line?

No. Each invoice line takes one tax rate. If you need a combined rate, create one with the total percentage and a clear name.

I changed a rate. Why do old invoices show the old one?

That's on purpose. An invoice is a record of what you charged at the time, so it keeps the tax rate it was created with. Only new invoices use the updated rate.