Is this “VAT” or “sales tax”?

The product uses a neutral “tax” percentage. You decide whether it represents VAT, GST, sales tax, IVA, or another levy based on your business and jurisdiction.

Does Invoice My Clients calculate U.S. sales tax automatically by address?

You enter the rate that applies to each invoice or item. Automated rate tables by street address are not built into the core percentage fields—use the rate your workflow or tax engine provides.

Can I show IVA for Mexico?

Yes—set the percentage that matches your taxable base for the supply. Formal CFDI/SAT compliance involves additional steps outside a simple rate field.

Are line items tax-inclusive or tax-exclusive?

Configure behavior that matches how you quote. Many businesses quote exclusive and add tax at the bottom; others use inclusive pricing. Be consistent with your contracts and local rules.

How does rounding work?

Totals round according to standard invoice math in the app. If your jurisdiction requires specific rounding per line vs invoice total, verify outputs with your accountant.

Who is responsible for filing?

You and your tax professional. Invoice My Clients helps you present amounts clearly; it does not submit returns to tax authorities.

Flexible Tax Management

Handle diverse tax requirements with ease. Set rates at the system, invoice, or item level.

What is Tax on Invoices?

Taxes on invoices represent the mandatory government levies added to the cost of goods or services. Properly calculating and displaying these taxes is crucial for compliance and transparency. Whether it's VAT, GST, or Sales Tax, accurate invoicing ensures you collect the right amount and maintain trust with your clients. For deductions and write-offs, see our tax deduction guide.

Three Levels of Control

We offer flexible tax settings to match your business needs.

System Level

Set a default tax rate for all your invoices. This is the base setting that applies automatically to every new invoice you create. It's perfect for businesses operating in a single tax jurisdiction where the rate is constant.

Invoice Level

Override the system default for specific invoices. If you have a client in a different state or country with a different tax requirement, you can adjust the tax rate for just that invoice without affecting your global settings.

Item Level

Apply specific tax rates to individual line items. This gives you the ultimate granularity. It is ideal for mixed invoices containing both taxable and non-taxable goods, or items taxed at different rates.

Regional guidance (sales tax, VAT, IVA)

Invoice My Clients stores tax as a percentage you control at system, invoice, or line level. The label “tax” on your PDF is generic—what it represents in real life depends on your jurisdiction and your accountant’s mapping.

United States — sales tax

Many U.S. businesses charge state and local sales tax on taxable goods and services. Rates and rules vary by state, county, and city; some services are exempt. Nexus and remote-seller rules affect who must collect. Model the rate your advisor approves—Invoice My Clients does not file returns for you.

European Union — VAT

EU businesses often show Value Added Tax on B2C sales in their member state and follow intra-EU B2B reverse-charge rules where applicable. Rates and invoicing requirements differ by country. Use your validated VAT rate per transaction type.

United Kingdom — VAT

UK VAT has standard and reduced rates and specific rules for services vs goods. Domestic, EU, and rest-of-world treatments differ post-Brexit. Your percentage fields should reflect HMRC guidance for each supply.

Mexico — IVA

Mexican businesses commonly charge IVA on taxable supplies. CFDI and SAT rules govern how tax appears on formal invoices. Invoice My Clients helps you display a tax percentage on invoices; compliance with local e-invoicing mandates is your responsibility with a qualified advisor.

This overview is not tax, legal, or accounting advice. Confirm rates, exemptions, and filing obligations with a professional.

Tax on invoices FAQ

How Invoice My Clients handles tax fields—and what you still need a professional for.

Is this “VAT” or “sales tax”?: The product uses a neutral “tax” percentage. You decide whether it represents VAT, GST, sales tax, IVA, or another levy based on your business and jurisdiction.
Does Invoice My Clients calculate U.S. sales tax automatically by address?: You enter the rate that applies to each invoice or item. Automated rate tables by street address are not built into the core percentage fields—use the rate your workflow or tax engine provides.
Can I show IVA for Mexico?: Yes—set the percentage that matches your taxable base for the supply. Formal CFDI/SAT compliance involves additional steps outside a simple rate field.
Are line items tax-inclusive or tax-exclusive?: Configure behavior that matches how you quote. Many businesses quote exclusive and add tax at the bottom; others use inclusive pricing. Be consistent with your contracts and local rules.
How does rounding work?: Totals round according to standard invoice math in the app. If your jurisdiction requires specific rounding per line vs invoice total, verify outputs with your accountant.
Who is responsible for filing?: You and your tax professional. Invoice My Clients helps you present amounts clearly; it does not submit returns to tax authorities.

Flexible Tax Management

Start Managing Taxes