Tax Rates: How to set up tax schemes

Taxing schemes calculate your taxes when completing sales and purchase orders. See below for steps on how to add taxes to your account.

Creating Tax Schemes

1. Goto Settings -> Global Settings -> Taxing Schemes
2. Click "Create Tax Scheme"
3. Enter the tax name and rate. The "Tax Scheme Name" is for your internal naming purposes. "Tax Name" is what will appear on Sales & Purchase Orders.
4. If you need to break down your tax further, toggle on Show secondary.
5. Once the taxing scheme has been added, you can choose that tax directly on sales or purchase orders.

Tax on shipping options

Ticking the "Tax of Shipping" box will add the tax rate on top of the shipping fee as well. If you leave this box unchecked, the shipping fee will not be taxed.

Secondary tax options

What is “compound secondary tax on primary”? 

A compound tax is a tax that is calculated on the original price of a product or service, as well as on any taxes that have already been added.

This means the tax applies not only to the price of the product itself but also to the taxes included in that price.

Default tax scheme

By making a tax scheme default, it will automatically selected in new Sales & Purchase Orders.

Updated on: 29/12/2025