This article applies to Aiwyn Practice.
Explains what must be true for tax to appear on an invoice and how the rate is chosen.
Two conditions, both required
Tax is applied automatically when an invoice is generated, and only when both conditions hold. First, the client must have a tax region assigned that matches a sales tax rule. Tax regions are created in Settings and then assigned from the client record. Second, the work codes used on that invoice must be selected under the rule's Taxable Services checkboxes. Either condition failing produces the same visible result: no tax line. A firm can therefore configure a rate correctly and still see untaxed invoices.
The rule supplies rate, label and start date
A matched rule contributes three things to the invoice: the Tax Rate %, the Tax Label shown on the invoice, such as Sales Tax or Use Tax, and an Effective Date governing when the rate becomes active. The label is presentational, the rate is arithmetic, and the effective date allows a rate change to be scheduled rather than applied on save.
If more than one rule matches the client's tax region, such as state and city rules, both rates apply to the invoice.
Taxability is decided per work code, not per invoice
Because Taxable Services is a list of work codes, taxability is a property of the work performed rather than of the client or the invoice. Two line items on the same invoice can be treated differently: work under a taxable code is taxed, while work under a code not selected in the rule is not.
Adding a new work code does not automatically make it taxable. Each applicable rule must select it. Expense codes and custom fees are not taxable.
Rate changes affect new draft invoices
A draft invoice keeps the tax rate that applied when the draft was created. Changing the tax rule after an invoice is drafted does not recalculate tax on that draft, even if the invoice is regenerated. The updated rate applies only to new draft invoices created after the change.
Related
- Sales tax rule fields reference
- Add a sales tax rule
- Fix sales tax missing from an invoice