You can explore the Tax settings in the Control Panel to add and manage taxes used in SI.

To access the Tax Settings, click the following icon.

This will open a form with all the Tax Settings.

The Tax Settings form allows you to apply tax rates or tax groups you have created.

There are two primary settings on this form.

#1 Taxes are the same for all taxable products and labor

This is the most commonly used setting, which applies the same tax or tax group to all products and the same tax or tax group to all labor.

You set your tax or tax group here, and the tax rate will be applied to all products and labor items marked as taxable.

#2 Taxes are set on each product and labor

This will allow you to set the tax rates for each product and labor item.

When this option is selected, there is no "Taxable" check box for items; instead, there are dropdown menus for setting a tax or tax group for the item.

SI has two default Taxes: tax and labor tax, each assigned a "0" value.

To add and edit taxes, click the Manage Taxes link on the form.

The Manage Taxes form will open.

You can add, edit, and delete taxes and tax groups here.

When you click New > Tax, the New Tax form opens. You can enter a name for the tax and a rate. 

When you click New > Tax Group, the New Tax Group form will open. Click Add, and select the taxes you want to add to the group.

Tax groups are useful if multiple taxes need to be applied to products and labor.

This option allows you to enter a fixed amount for any additional tax you want to apply to projects, service orders, and service plans.

You can choose to apply taxes to the labor types you create under the Labor Types setting in Control Panel. To do so, select the Assign Tax to Labor Types checkbox.

With the Assign Tax to Labor Types checkbox selected, the Manage Labor Types form in the Labor Types setting in Control Panel will now show an option to assign an Avalara tax code to every labor type you have created.

Check out this article for more details.

A Use tax is applied to an item's unit cost, not its price. Your SI catalog has a Use Tax setting for each product.

You can create specific purchase taxes or use any existing ones you have set up.

When you set a purchase tax for a product, you will be prompted whether or not to remove the "Taxable" option for the product. You will likely want to do this, as it is not common to tax products that have had use tax applied to them.

This prompt can be turned OFF or ON via your Application settings.

There is a setting to choose whether to include purchase tax in your margin and markup calculations for products.

All SI users will have the option to perform a tax lookup through Avalara for projects.

You can also enter your Avalara account information for expanded tax functionality.

Check out this article for more details.

In the project, the product, labor, and additional tax rates selected in the Tax settings in the Control Panel will be used by default.

If you want to change the tax rates for the project, select the project in Project Explorer, click Settings > Tax > Settings, and update the rates.

If you want to set different tax rates for change orders, open the change order, click Settings > Tax Settings, and change the rates.

Check out this article for more details.

If you wish not to summarize your taxes on reports, i.e., display each tax within a tax group, or if you wish to change the wording from "Sales Tax" on our reports to something else.

For example, change it to "VAT. There are Report Settings for this.

When not summarizing taxes, and when using the "Additional tax" option above, you can choose the display name for the "Additional tax" name (default is "Surtax.")

Check out this article for more details.