How to configure tax based on states in the Invoice app of Apptivo?

Updated on February 8, 2021 03:17AM by Admin

The Invoice app of Apptivo allows businesses to add the tax value of the items and services based on the customer’s location. Hence, you can configure the tax value for each state and the tax can be applied accordingly.

Currently, this feature is supported for the states in the US and Canada.

Steps to configure the tax value based on location

  • Log into your Apptivo account and go to the Invoice app. Select Settings from the App Header.
  • On the Settings page, select Invoices → Taxes.
  • The Taxes page comes into view. Here, the Automated Tax toggle controls the display of taxes based on the address of customers.
  • This toggle is disabled by default.
Invoice app

  • Enable the toggle to configure the automated tax based on the customer's state. The ‘Based on customer’ field appears. Here, you can set the address based on which the tax has to be calculated. The Billing Address is selected here.

Note: This dropdown lists only the standard address fields.

Enabled Toggle

  • Either create a new tax profile with the state details or configure the state for the existing tax information.
  • Here, we are creating a new Single Rate Tax first. On the Create page, the country and state dropdown will populate as the Automated Tax toggle is enabled.
  • Add the tax value and choose the Country and State along with other general details.
Create Single Rate

  • On selecting Create, a new Single Rate Tax is created for the selected state.
Tax Created

  • Similarly, on switching to the Multi Rate Taxes tab, you can perform the same action.
MultiRate Tax

  • Here, the states configured in the Sub Taxes are not taken into account. Instead, the State and Country configured for the Multi Rate Taxes will be taken into consideration.
Create MultiRate

  • Create an invoice in the Invoice app. Select a customer and add the items or services for the invoice.
  • The tax field will be auto-populated based on the customer’s location (Here, Billing Address). For instance, if the selected customer’s state is New York, then the tax code will be populated based on the configured tax value.
Create Invoice

Key Characteristics

  • This applies to the tax rates in both percentage and fixed values.
  • This is available in Single and Multiple taxes.
  • This is supported in standard address fields.
  • The tax code will generate at both Line Level and Header Level fields depending on the configuration.