Create named tax rates once at Settings → Payments → Tax rates (admins only), then set which rate applies to services and which to products by default. A rate can be simple ("HST — 13%") or composite ("GST 5% + PST 7%") with each component reported under its own label.
How do I create a tax rate?
Add a rate
Click the add button and name it the way your team knows it — "HST", "Sales tax", "GST + PST".
Add its components
Each component has a label and a percentage. One component makes a simple rate; several make a composite rate, and the editor shows the running total.
Save
The rate appears in the list with its total percentage and, for composite rates, the breakdown.
How do I set the default tax for services and products?
Click Defaults on the tax-rates page:
| Default | Applies to | Can be "No tax"? |
|---|---|---|
| Default service tax | Services at checkout | Yes |
| Default product tax | Retail products | Yes |
They're separate because many regions tax services and goods differently.
Editing and removing rates
Edit a rate any time — the change applies to future sales. Removing a rate asks for confirmation first.
Common questions
Do I need a tax rate before I can sell?
No — defaults can be No tax. But set them up before opening if you charge tax, or every early sale will need fixing by hand.
Can different locations have different tax rates?
Rates are defined business-wide.
Where does the tax show up?
Itemised on the receipt at checkout and in your finance reports, broken down by component for composite rates.