Adding Tax to Invoices

You can create different taxes and add them to invoices. Adding tax to invoices simplifies accounting processes, making tracking revenue, expenses, and taxes owed easier.

It also helps you prepare accurate tax returns and financial statements.

Check out how to [add a new tax](https://akaunting.com/hc/docs/taxes-and-filing/adding-a-new-tax-rate/).

Adding Tax to Invoices:


- * Click Sales on the Navigation Menu.


- * Select Invoices from the expanded menu options.


- * From the Invoices page, click New Invoice.


- * Enter the required details on the Invoice creation page.


- * Invoice creation details include but are not limited to Customer, Title, Logo, Billing information, Date, Order number, and more. [Check out the details you should have in an invoice](https://akaunting.com/blog/invoice-billable-hours).


- * Click Add an Item to select from a list of items or create a New item.


- * Below the Price input box, Click Add tax to add a Line Tax specific to the item.

If you don’t haven’t added any taxes prior to creating an invoice, you can add a _New Tax_ from the dropdown option. Click New tax, Enter the required details – Name and Rate (in percentage), and _Save__._


- * Then, Save.


- * The added Tax is automatically applied to the total invoice amount.

Updated on: 23/03/2025