Skip to main content

Tutorial: Setting Up Tax Rates

This tutorial walks you through setting up tax agencies (also known as tax numbers), creating tax rates, and optionally grouping taxes. By the end, you will have tax rates ready to apply to your invoices and expenses.

QUICK_PATH​

app_url: https://app.fiskl.com/dashboard/settings/taxes/agencies

For experienced users who need a refresher:

  1. Go to Settings > Tax Settings > Tax Agencies tab
  2. Select New Tax Agency and enter agency name, country, and currency
  3. Select Create to create the agency
  4. Switch to the Tax Rates tab
  5. Select New Tax Rate and enter the tax name, percentage, and assign it to your agency
  6. Select Create to create the rate
  7. Optionally, go to the Tax Groups tab to combine multiple rates

STEP_DETAIL​

Step 1: Open Tax settings​

app_url: https://app.fiskl.com/dashboard/settings/taxes/agencies

You need to navigate to the Tax settings page to begin.

  • Select the gear icon in the bottom left, then select Tax Management
  • The Tax settings page opens with three tabs: Tax Agencies, Tax Rates, and Tax Groups

Step 2: Create a tax agency​

app_url: https://app.fiskl.com/dashboard/settings/taxes/agencies

A tax agency represents the authority you pay taxes to, such as HMRC or the IRS.

  • Select the Tax Agencies tab
  • Select New Tax Agency
  • Enter the agency name (for example, "HMRC" or "IRS")
  • Select the country and currency for this agency
  • Select the filing period to get notified of when your taxes are due
  • Select Create
tip

If you operate in multiple countries, create a separate tax agency for each jurisdiction. For example, one for UK VAT in GBP and another for French VAT in EUR.

Step 3: Confirm the ledger account​

app_url: https://app.fiskl.com/dashboard/accounting/chart-of-accounts

After saving, Fiskl automatically creates a Liability ledger account for this agency.

  • Go to Accounting > Chart of Accounts and select Liabilities > Sales Taxes Payable
  • The ledger account has the same name as your tax agency
  • All tax transactions linked to this agency are recorded in that account

Step 4: Add a tax rate​

app_url: https://app.fiskl.com/dashboard/settings/taxes/rates

Now that you have an agency, you can create tax rates.

  • Select the Tax Rates tab
  • Select New Tax Rate
  • Enter the tax name (for example, "Standard VAT" or "Sales Tax")
  • Enter the tax percentage
  • Select the Tax Agency to assign this rate to
  • Choose whether this is a Sales or Non-Sales tax
  • Select Create
tip

You can assign multiple tax rates to a single agency. For example, a standard rate of 20% and a reduced rate of 5% can both belong to the same agency. You cannot change a tax rate after it has been created. If the rate changes, archive the existing rate and create a new one.

Step 5: Create a tax group (optional)​

app_url: https://app.fiskl.com/dashboard/settings/taxes/groups

If your jurisdiction requires multiple taxes on the same transaction, you can group them.

  • Select the Tax Groups tab
  • Select New Tax Group
  • Enter a name for the group (for example, "BC Sales Tax" or "Quebec GST+QST")
  • Select two or more tax rates to include in the group
  • If one tax should be calculated on top of another, toggle the Compound option
  • Select Create

Step 6: Apply your tax rates​

Your tax rates and groups are now available throughout Fiskl.

  • When creating an invoice or expense, select the tax rate or group from the tax dropdown on each line item
  • The correct tax amount is calculated automatically based on your settings

COMMON_FAILURES​

Cannot find the tax agency when adding a new rate​

Symptom: The Tax Agency selector is empty when you create a new tax rate.

Cause: You have not created a tax agency yet. Tax rates require an agency to be assigned to.

Fix:

  1. Select the Tax Agencies tab
  2. Select New Tax Agency and create your agency first
  3. Return to the Tax Rates tab and try again

Tax rate not appearing on invoices​

Symptom: When creating an invoice, the tax rate you created does not appear in the tax dropdown.

Cause: The tax rate may not be marked as a sales tax, or it may be assigned to an agency with a different currency than the invoice.

Fix:

  1. Go to Settings > Tax Settings > Tax Rates
  2. Select the tax rate to edit
  3. Confirm it is set to Sales tax (not Non-Sales)
  4. Confirm the assigned agency currency matches the invoice currency
  5. Select Save

Unable to change a tax rate​

Symptom: The tax percentage field is disabled when you edit an existing tax rate.

Cause: Tax rates cannot be changed after they have been created. You need to archive the rate and create a new one.

Fix:

  1. Go to Settings > Tax Settings > Tax Rates
  2. Archive the tax rate
  3. Create a new tax rate with the updated percentage

Compound tax calculating incorrectly​

Symptom: The total tax amount on a transaction does not match your expected compound calculation.

Cause: The Compound option may not be enabled on the tax group, or the taxes are in the wrong order.

Fix:

  1. Go to Settings > Tax Settings > Tax Groups
  2. Select the group to edit
  3. Confirm the Compound option is toggled on
  4. Check that the taxes are in the correct order (the base tax should appear first)
  5. Select Save

Missing ledger account after creating an agency​

Symptom: You cannot find the Liability ledger account for your tax agency in the Chart of Accounts.

Cause: The ledger account is created automatically but may not appear if the page has not refreshed.

Fix:

  1. Go to Accounting > Chart of Accounts
  2. Search for the name of your tax agency
  3. The account should appear under Liabilities
  4. If still missing, try refreshing the page or contact support

NEXT_STEPS​

Now that you have set up your tax rates, you can:

  • Create an invoice — Apply your new tax rates when billing clients. See Creating Invoices
  • Record expenses — Assign tax rates to your business expenses. See Expenses Overview
  • Run a sales tax report — Review your tax liabilities across a date range. See Sales Tax Report
  • Manage your Chart of Accounts — Review the auto-created tax liability accounts. See Chart of Accounts