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Set up system to automatically apply tax rates on invoices

By Joshua waldman

Updated 2 months ago

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. 

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