Taxes
Add required taxes to your invoices
Dealing with taxes is easy in Edens. You can configure the required tax rates and add necessary legal information such as the tax ID to the invoice.
When applying tax rates, Edens calculates the total tax amount per tax rate and summarizes it in a table under invoice items.
Tax Rates
Go to the “Workspace” > “Taxes” page to view a list of tax rates. Tax rates vary by country, region, city, etc. For example, if you operate in Europe, you might want to create a catalog of tax rates for OSS VAT.
You can create as many tax rates as you need. A tax rate can’t be updated or deleted after creation to prevent invoicing problems, but you can archive it.
To create a tax rate, you’ll need to:
Give it a name
The name appears on your customer’s invoice and is usually a short name that describes the specific type of tax, such as “VAT” or “California state sales tax.”
Set a percentage
The percentage is a number that represents the tax percentage to be collected, for example, 20%.
Choose whether it's inclusive or exclusive tax
Tax rates can be categorized as either exclusive or inclusive. An exclusive tax is not included in the invoice subtotal, whereas an inclusive tax is. The table below illustrates how a 25% tax rate modifies the total amount due, depending on whether it is exclusive or inclusive.
| Tax | Subtotal | Tax due | Calculation | Total |
|---|---|---|---|---|
| 25% Exclusive | €5.00 | €1.25 | €5.00 + €1.25 | €6.25 |
| 25% Inclusive | €5.00 | €1.00 | €4.00 + €1.00 (already included in the total) | €5.00 |
Using multiple tax rates
You have the option to apply tax rates to individual invoice items or set a default tax rate for all line items in an invoice. However, if you set tax rates on both an invoice item and the invoice itself, the rates specified for the invoice will not apply to that specific invoice item.
Discounts
Discounts are applied before tax.
Tax amounts
When applying tax rates to an invoice, the tax amounts are aggregated into a table under invoice items. This table shows the total tax amount for each tax rate used throughout the entire invoice, and also includes the amount without taxes applied.
Tax exempt and reverse charge
This feature is coming soon. If you rely on such tax statuses, please contact us so we can deliver it faster for you.
Tax IDs
With Edens, you can manage tax IDs for both yourself and your clients. The tax IDs for both the workspace and clients are displayed in the header of the invoice PDF.
Workspace tax IDs
Displaying tax IDs on invoice documents is a common regulatory requirement.
With Edens, you can easily add multiple tax IDs to your workspace. To manage your tax IDs, navigate to the “Workspace” > “Taxes” > “Tax IDs” page.
Client tax IDs
Collecting and displaying a customer’s tax ID on an invoice is a common requirement for B2B sales.
To add a client tax ID, navigate to the Client page and click on “Settings” > “Tax IDs”.