Paylent does not know your tax law and does not pretend to. It gives you the settings an invoice needs and does the arithmetic exactly.
Name it and set a usual rate
In Settings → Invoicing, choose what tax is called where you are — VAT, GST, sales tax, whatever appears on your invoices — and the rate you charge most of the time. That rate is filled in for you on new lines, and you can change it on any of them.
If you do not charge tax at all, set no rate and nothing about tax appears on your invoices.
Rates per line
Tax is a property of a line, not of an invoice. A single invoice can carry the standard rate on one line, a reduced rate on another and zero on a third, which is what you need when the same job mixes things your country taxes differently.
The tax summary at the bottom of the invoice is derived from the lines. It cannot disagree with them.
Inclusive or exclusive prices
Prices can be quoted with tax already in them or without:
- Exclusive — the unit price is before tax, and tax is added on top. Usual when you bill other businesses.
- Inclusive — the unit price is what the customer pays, and the tax inside it is worked backwards. Usual when you bill the public.
This is a business-wide setting. Both are correct; what matters is that the invoice says which one it is, and it does.
Your registration number
Enter your tax registration number and it is printed on invoices that charge tax, which in most places is what makes them valid for the customer to reclaim against.
Settings are frozen at issue
An invoice keeps whichever tax settings it was raised under. Change your usual rate next April and the invoices you issued last year are untouched — they still say what they said when you sent them. New drafts pick up the new settings.