Creating sales tax rates for invoices is definitely one of the first things to do when initially setting up your Lawcus account. Despite taxes being one complicated issue, setting it up on Lawcus has been made as simple as possible.
You can now add primary and secondary taxes on Lawcus and include these in your invoices
Setting up taxes in Lawcus settings
To create tax rates in tax settings:
Click Add new Tax, enter the new tax rate and name, then click Save
After you add a tax you can mark it as primary or secondary and accordingly the tax will be added accordingly.
On the secondary tax, you can choose how you want to apply it.
Secondary tax can be applied on -
1. Pre-tax amount
It is called the Pre-tax amount since it is applied directly to the invoice amount total.
In other words, this secondary tax is applied to the invoice amount that is calculated before the primary tax is applied to it.
For example -
The invoice subtotal is $100
primary tax is 10% - $10
Secondary pre-tax is 10% - It will be applied on invoice subtotal i.e. on $100
So the secondary pre-tax will be $10
Now the total is 100+10+10 = $120
2. Post-tax amount
This will be applied to the invoice amount calculated after the primary tax is applied to the invoice total.
For example -
The invoice subtotal is $100
primary tax is 10% - $10
Secondary post-tax is 20% - It will be applied on invoice subtotal + primary tax
So the secondary post-tax will be (100+10)*20% = $22
Now the total is 100+10+22 = $132
NOTE - It will work only on the new voices you create after adding the tax settings and not on the old already created invoices.