Sales Tax

If you are required to collect sales tax on your services or any other invoiced items, you can set tax rates in Time To Pet that will automatically be applied to taxable items on your invoices.

In This Article

Setting Tax Rates

How you set up your tax rates will depend on whether or not you have your Time To Pet account connected to QuickBooks Online.

Connected to QuickBooks

If your account is connected to Quickbooks, you’ll need to first add your tax rate(s) to your QuickBooks account. Once your tax rates are set in QuickBooks, go to Company Settings > General in your Time To Pet account and click on the “Reload Tax Rates From QuickBooks” option.

Reload Tax Rates From QuickBooks

Not Connected To QuickBooks

If your account is not connected to QuickBooks, you can simply add your tax rate(s) in Company Settings > General by clicking the “New Tax Rate” button. Remember to save changes after adding your tax rate(s).

Adding A New Tax Rate

When adding tax rates in Company Settings > General, you’ll need to select one of the default tax rates. This tax rate will be applied to all client’s accounts by default, but if you have different tax rates for different areas, you can set tax rates for individual clients in the “Services/Invoices” tab of their accounts.

Setting A Client's Tax Rate

Making Services & Items Taxable

Tax is only applied to invoice line items that you have set to be taxable. To make a service taxable, edit it in your Services List and check the “Service Is Taxable” box.

Service Is Taxable

When adding custom line items to an invoice, you can select whether the item is taxable or not in the “Tax?” column.

Making A Custom Line Item Taxable

Applying Tax To Existing Invoices

Changes you make to tax rates in Company Settings or an individual client’s account will affect all future invoices created after the change but will not automatically be applied to existing invoices. If you have existing invoices that need taxes applied or edited, open the Edit Invoice screen and manually change the Tax Rate.

Applying Tax To Existing Invoice

Similarly, changing whether a service is taxable or not in the Services List will not affect services on existing invoices. If you need to change whether an existing scheduled service is taxable, open the Edit Invoice screen, click the pencil icon for that line item, and change the “Tax?” column for that service.

More Information on Updating Tax Rates

Although rare, sometimes Tax Rate(s) change, and invoices need to be updated. When the tax rate was added and when the invoice was created will determine how the Tax Rate(s) are updated on invoices.

Invoices Created Before Tax Rates Were Added

If invoices were created before any tax rates were added, the tax rate on each invoice would need to be individually adjusted. To do this, open each invoice and update the tax rate at the bottom of the invoice. Going forward, any invoices created after enabling the new tax rate would have the tax rate automatically added. 

Invoices Created, Same Tax Rate Needs to be Updated

If a tax rate was set, invoices generated while that rate was set, and that same tax rate has changed and needs updating; those can be Bulk Updated. To update the tax rate in bulk, use Bulk Update > Bulk Refresh Rates button. This only works when editing the same Tax Rate. See below for example, clients who have invoices using "Tax Rate 1 - City Name Residents" need that updated from 5% to 7% when "City Name" changed their tax rate. This can be done by editing the "Tax Rate 1 - City Name Residents" rate and then using Bulk Update to refresh their invoices:

Generals Settings - Tax rate section with two tax rates configured

Invoices Were Created Using A Different Tax Rate, Need to Update to a Separate New Tax Rate

Bulk Update will not work if clients with "Tax Rate 1 - City Name Residents" need to be updated to "Tax Rate 2 - Second City Name Residents" - this would need to be manually updated by opening each invoice and updating the tax rate on each invoice that was created prior to adding the new tax rate. 

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