This is the process to set up Billy so that tax rates, regardless of their local name (sales tax, VAT, GST) may be auto-applied on invoices.
Step 1: Define rates
- go to Settings > VAT rates
- to create rates click Create rate button
- fill out the fields.
- if both incoming and outgoing VAT rates apply be sure to name carefully.
- check for VAT ruleset
- Either create from scratch or check the current ruleset to see if the Fallback rate is defined
- Fallback rate is a fancy term meaning apply this rate if no other rules apply.
- Note: when creating invoices that use a different rate it will need to be manually set in the invoice
- Save any changes
Step 2: Define product taxes
- go to Settings > Products
- locate/create products where taxes need to be applied.
- in the VAT field select the applicable rule
- now the system can apply the rates for you
note: any of this can be overwritten within the invoice, if there's an exception.
Billy can currently only apply one tax rate at a time. This will likely change at some point in the future.