JoomInvoice - Taxes Managements

JoomInvoice provides flexible tax handling. You can define tax rates, apply them to individual line items or to the entire invoice, and override rates on a per-invoice basis.

Managing Tax Definitions

Go to Components > JoomInvoice > Settings > Taxes to view and manage your tax definitions.

Creating a Tax

1. Click New.
2. Fill in:
   • Name - A name for the tax (e.g., "VAT", "GST", "Sales Tax"). This name can be a translation key for multilingual sites.
   • Type - Choose Percentage (a percentage of the amount) or Fixed Amount (a flat fee).
   • Value - The default rate (e.g., 20 for 20%) or the flat amount.
   • Tax Group - Group 1 or Group 2. Group 2 taxes are calculated on top of Group 1 taxes (see below).
   • Calculate On - Whether this tax is calculated on the subtotal including item-level taxes, or on the item subtotal only.
   • Show as Column - Whether to display this tax as a separate column in the invoice list.
   • Enabled by Default - Whether this tax is automatically applied to new invoices.
3. Click Save.

Applying Taxes to Individual Items

Each line item on an invoice can have its own tax:

1. When adding or editing an item on the Items tab, select a Tax from the dropdown.
2. The tax is calculated on that item's subtotal (unit price x quantity, minus any item discount).
3. Item-level taxes appear in the Grouped Taxes section of the invoice template.

The default tax for new items is configurable in Configuration > Default tax on items.

Applying Global Taxes to an Invoice

Global taxes apply to the entire invoice rather than individual items:

1. Open an invoice for editing.
2. In the items/taxes area, you will see your defined taxes with checkboxes.
3. Enable or disable each tax for this invoice.
4. You can override the tax rate for this specific invoice without changing the default.

Tax Groups (Compound Taxes)

Taxes are organized into two groups for compound calculations:

• Group 1 - Calculated first, on the base subtotal.
• Group 2 - Calculated on the subtotal plus Group 1 taxes.

This is useful in regions where one tax is calculated on top of another. For example, if you have a 10% provincial tax (Group 1) and a 5% federal tax (Group 2) on a $100 subtotal:

• Group 1: 10% of $100 = $10
• Group 2: 5% of $110 = $5.50
• Total: $115.50

If you do not need compound taxes, simply put all your taxes in Group 1.

Per-Invoice Tax Overrides

Each invoice maintains its own copy of the tax settings. You can:

• Enable or disable any tax for a specific invoice without affecting other invoices.
• Change the rate for a specific invoice (for example, applying a reduced rate for a specific client).

These overrides only affect the invoice you are editing.

How Taxes Appear on Invoices

The invoice template controls how taxes are displayed. There are several display modes:

• Global Taxes - Shows taxes applied to the whole invoice (e.g., "VAT 20%: $200").
• Grouped Taxes - Shows item-level taxes grouped by tax name (e.g., all items with "VAT 20%" totaled together).
• Grouped Taxes Total - Shows the total for each tax group.

See Templates for details on the template sections that control tax display.