Set up taxes for your estimates and invoices once and for all! Tax settings in Thryv gives you the tools you need to set up your invoices so they are automatically in compliance with your local laws and help you charge the taxes you need from your customers!
To set up your taxes, navigate to Settings>Payments>Taxes
From this screen, you are able to set up the taxes to be used on your invoices.
Configure Tax Inclusion/Exclusion (For US taxes, VAT, or GST)
First, use the radio buttons to toggle whether your prices will exclude or include tax.
Note: If you are using an accounting app integration such as QuickBooks, it's best to use 'Exclude Taxes'. If you choose this option and you have an accounting app, you may have to manually update your taxes within the accounting app
- Exclude Tax - This means the price of your product/service will be your price, and then taxes will be added on top of that afterward (Practice in US)
- Include Tax - This means that the tax will be built into the price of the product/service (Practice in AUS, CAN, and elsewhere)
To add a new tax, click on Add Tax. A new line will appear, and you can enter the name and tax rate as before
Click on the Apply to new items drop-dow to select which type of new items this tax should apply to. Selecting a box will have this tax automatically applied to any new items created of that type.
To delete a tax, click on the Tri-dots and then click on Delete Tax
Configure Taxes For Your Country
Tax settings in Thryv may need to be adjusted according to which country you are operating in. Below is a guide for each country to configure taxes correctly. As always, to determine the specific taxes that apply to a business's products or services in a particular location, it's advisable to consult with a tax professional or accountant who is familiar with the tax regulations in your area.
Tax on Deposits
In Canada, deposits on an estimate or quote are generally subject to tax. When a business receives a deposit from a customer, it is typically considered to be payment for services or goods that will be provided in the future. As a result, the deposit is generally subject to the same tax rules as the final sale.
When tax is added to an item in Thryv, it always applies on the invoice total, and does not apply to the deposit itself. The necessary taxes will be accounted for in the invoice total, and will not show on the quote itself, as the deposit is not considered an "item" in Thryv.
Now that your taxes are configured, you're ready to add your products! Click Here for a full guide to adding your product list to Thryv