{"id":26854,"date":"2025-11-05T08:54:57","date_gmt":"2025-11-05T08:54:57","guid":{"rendered":"https:\/\/clockify.me\/help\/?p=26854"},"modified":"2026-04-23T07:42:05","modified_gmt":"2026-04-23T07:42:05","slug":"taxes-in-invoices","status":"publish","type":"post","link":"https:\/\/clockify.me\/help\/projects\/taxes-in-invoices","title":{"rendered":"Invoice taxes"},"content":{"rendered":"\n<div class=\"wp-block-custom-audience-tag audience-tag-box\"><span class=\"tag-title\">Who can use this feature?<\/span><div class=\"tag-rows\"><div class=\"tag-row\"><svg width=\"18\" height=\"18\" viewBox=\"0 0 24 24\" fill=\"none\"><mask id=\"mask-aud-final\" style=\"mask-type:alpha\" maskUnits=\"userSpaceOnUse\" x=\"0\" y=\"0\" width=\"24\" height=\"24\"><rect width=\"24\" height=\"24\" fill=\"#D9D9D9\"><\/rect><\/mask><g mask=\"url(#mask-aud-final)\"><path d=\"M12 12C10.9 12 9.95833 11.6083 9.175 10.825C8.39167 10.0417 8 9.1 8 8C8 6.9 8.39167 5.95833 9.175 5.175C9.95833 4.39167 10.9 4 12 4C13.1 4 14.0417 4.39167 14.825 5.175C15.6083 5.95833 16 6.9 16 8C16 9.1 15.6083 10.0417 14.825 10.825C14.0417 11.6083 13.1 12 12 12ZM4 20V17.2C4 16.6333 4.14583 16.1125 4.4375 15.6375C4.72917 15.1625 5.11667 14.8 5.6 14.55C6.63333 14.0333 7.68333 13.6458 8.75 13.3875C9.81667 13.1292 10.9 13 12 13C13.1 13 14.1833 13.1292 15.25 13.3875C16.3167 13.6458 17.3667 14.0333 18.4 14.55C18.8833 14.8 19.2708 15.1625 19.5625 15.6375C19.8542 16.1125 20 16.6333 20 17.2V20H4ZM6 18H18V17.2C18 17.0167 17.9542 16.85 17.8625 16.7C17.7708 16.55 17.65 16.4333 17.5 16.35C16.6 15.9 15.6917 15.5625 14.775 15.3375C13.8583 15.1125 12.9333 15 12 15C11.0667 15 10.1417 15.1125 9.225 15.3375C8.30833 15.5625 7.4 15.9 6.5 16.35C6.35 16.4333 6.22917 16.55 6.1375 16.7C6.04583 16.85 6 17.0167 6 17.2V18ZM12 10C12.55 10 13.0208 9.80417 13.4125 9.4125C13.8042 9.02083 14 8.55 14 8C14 7.45 13.8042 6.97917 13.4125 6.5875C13.0208 6.19583 12.55 6 12 6C11.45 6 10.9792 6.19583 10.5875 6.5875C10.1958 6.97917 10 7.45 10 8C10 8.55 10.1958 9.02083 10.5875 9.4125C10.9792 9.80417 11.45 10 12 10Z\" fill=\"black\" fill-opacity=\"0.87\"><\/path><\/g><\/svg><span>Workspace owner and admins<\/span><\/div><div class=\"tag-row\"><svg width=\"18\" height=\"18\" viewBox=\"0 0 24 24\" fill=\"none\"><mask id=\"mask-flg-final\" style=\"mask-type:alpha\" maskUnits=\"userSpaceOnUse\" x=\"0\" y=\"0\" width=\"24\" height=\"24\"><rect width=\"24\" height=\"24\" fill=\"#D9D9D9\"><\/rect><\/mask><g mask=\"url(#mask-flg-final)\"><path d=\"M5 21V4H14L14.4 6H20V16H13L12.6 14H7V21H5ZM14.65 14H18V8H12.75L12.35 6H7V12H14.25L14.65 14Z\" fill=\"black\" fill-opacity=\"0.87\"><\/path><\/g><\/svg><span>Invoice is a paid feature available in Standard plan or higher and on Free trial<\/span><\/div><\/div><\/div>\n\n\n\n<p class=\"translation-block\"><strong>Tax<\/strong> fields in an invoice form shows the amount of tax added to the total price of a product or a service. Tax can either be a general amount added to the total, or broken down by the item, depending on the tax system used. Clockify uses item-based tax system.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Item-based taxes<\/h3>\n\n\n\n<p>Item-based taxes are used to apply taxes individually to each item on an invoice. This way you can have a better control over your taxes, making sure that taxes are applied only to relevant items.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"translation-block\">In order to use it, the Invoicing feature needs to be enabled in the <strong><a href=\"https:\/\/clockify.me\/help\/track-time-and-expenses\/workspaces#workspace-settings\">Workspace settings<\/a><\/strong>:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Navigate to the workspace name at the top left corner of the page<\/li>\n\n\n\n<li class=\"translation-block\">Open the three-dot menu and choose <strong>Workspace settings<\/strong><\/li>\n\n\n\n<li class=\"translation-block\">Navigate to the <strong>Invoicing<\/strong> section in the <strong>General <\/strong>settings and toggle the switch to enable it<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"513\" src=\"https:\/\/clockify.me\/help\/wp-content\/uploads\/2025\/11\/Enable-Invoicing-Workspace-settings-1024x513.png\" alt=\"\" class=\"wp-image-31022\" srcset=\"https:\/\/clockify.me\/help\/wp-content\/uploads\/2025\/11\/Enable-Invoicing-Workspace-settings-1024x513.png 1024w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2025\/11\/Enable-Invoicing-Workspace-settings-300x150.png 300w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2025\/11\/Enable-Invoicing-Workspace-settings-768x385.png 768w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2025\/11\/Enable-Invoicing-Workspace-settings-18x9.png 18w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2025\/11\/Enable-Invoicing-Workspace-settings.png 1400w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"tip\">User permissions for this feature depend on the settings in the Permissions tab, in the Workspace settings.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">How item-based taxes work<\/h4>\n\n\n\n<p class=\"translation-block\">&nbsp;When you create a new invoice, you will see two columns after the <strong>AMOUNT<\/strong> column:<br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><strong>TAX<\/strong> (if only one tax is enabled)<\/li>\n\n\n\n<li class=\"translation-block\"><strong>TAX 2<\/strong> (if a second tax is enabled in the settings)<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">Each item on the invoice has checkboxes next to the <strong>TAX<\/strong> and <strong>TAX 2<\/strong> columns. By default, these checkboxes are checked (blue with a white tick), indicating that the taxes are applied. Unchecking them means that taxes will <strong>not<\/strong> be applied to that particular item.<\/p>\n\n\n\n<p>Taxes are calculated in the following way:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><strong>TAX<\/strong>: This is calculated based on the percentage defined in the <strong>Invoice Settings<\/strong><\/li>\n\n\n\n<li class=\"translation-block\"><strong>TAX 2<\/strong>: If enabled, this is also calculated as a percentage of the item amount<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Taxation mode<\/h4>\n\n\n\n<p>Taxation mode can be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Simple<\/strong>: Both taxes are applied to the total amount of the item\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">E.g.: For an item priced at $100, with <strong>Tax 1<\/strong> at 10% and <strong>Tax 2<\/strong> at 10%, the calculated taxes will be $10 for each, making the total $120.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Compound<\/strong>: The second tax is applied on the taxed amount, not the item amount.\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">E.g.: For an item priced at $100, with <strong>Tax 1<\/strong> at 10% and <strong>Tax 2<\/strong> at 10%, <strong>Tax 1<\/strong> is $10, and <strong>Tax 2<\/strong> is calculated on the taxed amount, resulting in $11 for <strong>Tax 2<\/strong>, making the total $121.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">The <strong>checkboxes<\/strong> for <strong>TAX<\/strong> and <strong>TAX 2<\/strong> are remembered for each item on the invoice, meaning that the selected state is retained until the invoice is manually edited or changes are made to the tax settings. If you change the tax percentage during invoice creation, the totals will update automatically to reflect the new tax rates.<br>If you switch from <strong>Simple<\/strong> to <strong>Compound<\/strong> or vice versa, all <strong>Unsent invoices<\/strong> will automatically update to match the new taxation settings.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><strong>Simple to Compound mode<\/strong>: The <strong>Apply tax<\/strong> checkbox will appear next to each item<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Compound to simple mode<\/strong>: The <strong>Tax<\/strong> and <strong>Tax 2<\/strong> checkboxes will reappear<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"608\" src=\"https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-1024x608.png\" alt=\"\" class=\"wp-image-24428\" srcset=\"https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-1024x608.png 1024w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-300x178.png 300w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-768x456.png 768w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-1536x913.png 1536w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-2048x1217.png 2048w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-12.57.34-18x12.png 18w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"translation~block\">If you remove one of the taxes from an invoice, then selected taxation mode will also be removed. <br>If you add a previously removed tax, the system will remember the last selected taxation mode for that invoice. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Set taxation mode on individual invoices<\/h4>\n\n\n\n<p class=\"translation-block\">If you&#8217;re using two taxes (<strong>TAX<\/strong> and <strong>TAX 2<\/strong>) you can set a default taxation mode in the <strong>Invoice settings<\/strong> that will be applied to all new invoices. However, you can override these default settings for individual invoices when creating or editing.<\/p>\n\n\n\n<p>To do that: <\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Open the invoice you&#8217;re working on<\/li>\n\n\n\n<li class=\"translation-block\">Scroll down to the <strong>Taxation mode<\/strong> section<\/li>\n\n\n\n<li class=\"translation-block\">Choose whether <strong>Simple<\/strong> or <strong>Compound<\/strong> taxation mode should be applied to that specific invoice<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"328\" src=\"https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-1024x328.png\" alt=\"\" class=\"wp-image-24429\" srcset=\"https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-1024x328.png 1024w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-300x96.png 300w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-768x246.png 768w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-1536x492.png 1536w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-2048x656.png 2048w, https:\/\/clockify.me\/help\/wp-content\/uploads\/2020\/11\/Screenshot-2025-07-18-at-13.06.13-18x6.png 18w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"note translation-block\">Taxation mode for a new invoice will not affect any invoices that are already <strong>Partially paid<\/strong>, <strong>Paid<\/strong> or <strong>Void<\/strong>.<\/p>\n\n\n\n<div class=\"wp-block-group related-articles\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\" id=\"9-related-articles\">Related articles<\/h3>\n\n\n\n<ul class=\"wp-block-list related-articles-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/help\/projects\/invoicing-tracked-time-expenses\">Invoice tracked time &amp; expenses<\/a><\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/help\/projects\/invoicing\">Create &amp; manage invoices<\/a><\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/help\/projects\/sending-invoice-emails\">Send invoice emails<\/a><\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/help\/projects\/export-invoices\">Export invoices<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"Tax fields in an invoice form shows the amount of tax added to the total price o&#8230;","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_helpful_status":1,"_searchwp_excluded":"","footnotes":""},"categories":[66],"tags":[],"class_list":["post-26854","post","type-post","status-publish","format-standard","hentry","category-invoices"],"acf":[],"featured_image_src":null,"author_info":{"display_name":"tamara radijevac","author_link":"https:\/\/clockify.me\/help\/author\/tamara-radijevac"},"_links":{"self":[{"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/posts\/26854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/comments?post=26854"}],"version-history":[{"count":6,"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/posts\/26854\/revisions"}],"predecessor-version":[{"id":31023,"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/posts\/26854\/revisions\/31023"}],"wp:attachment":[{"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/media?parent=26854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/categories?post=26854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clockify.me\/help\/wp-json\/wp\/v2\/tags?post=26854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}