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How to Create Taxes under Tax Settings?
How to Create Taxes under Tax Settings?

Create taxes as per the regulatory or internal requirement.

Devanshi Kackar avatar
Written by Devanshi Kackar
Updated over a month ago

When you set up your Lawcus account, creating taxes for your invoices is essential. Although dealing with taxes can be complicated, the process is made simple on Lawcus. This should be one of the first tasks you complete with Lawcus.


You can now add primary and secondary taxes on Lawcus and include these in your invoices.

Steps to Set up Taxes in Settings

  1. Click on the Avatar Icon on the top, then select Settings.

  2. ​Expand Bill Settings, and select Tax Settings.

  3. Add the Name of the tax and Value in percentage, and choose between Primary Tax or Secondary Tax. In the case of secondary tax, please select the calculation basis, whether it is a pre-tax or post-tax calculation.

  4. To add multiple taxes, click on Add New Tax and input the above details.

  5. Finally, click on the Save button.

Pre-Tax Amount: A pre-tax amount means the additional tax is applied before the primary tax is considered. In other words, the secondary tax is calculated on the original invoice subtotal before adding the primary tax.

Example:

  • Invoice subtotal = $100

  • Primary tax = 10% of $100 → $10

  • Secondary pre-tax = 10% of $100 → $10

  • Final total = $100 + $10 (primary tax) + $10 (pre-tax) = $120

Post-Tax Amount: A post-tax amount means the additional tax is applied after the primary tax has already been added. This means the secondary tax is calculated on the subtotal + primary tax.

Example:

  • Invoice subtotal = $100

  • Primary tax = 10% of $100 → $10

  • Secondary post-tax = 20% of ($100 + $10) → 20% of $110 = $22

  • Final total = $100 + $10 (primary tax) + $22 (post-tax) = $132

Note: This will apply only to new invoices created after adding the tax settings and will not affect previously generated invoices.

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