Tax Rates

Adding a tax rate

Go to Settings → Tax Rates → New Tax Rate. Enter:

• Name — e.g. “GST 8%”, “VAT 15%”, “Zero Rated”
• Rate — the percentage (e.g. 8 for 8%)
• Tax type — Input (on purchases) or Output (on sales), or both

Applying tax rates to invoices

When adding line items to an invoice or bill, select a tax rate from the Tax dropdown on each line. Ledger calculates the tax amount and shows it as a separate line in the totals.

Tax-exclusive vs tax-inclusive

• Tax exclusive — the price you enter does not include tax; tax is added on top
• Tax inclusive — the price you enter already includes tax; Ledger back-calculates the tax component

Set your preference in Settings → Branding Themes → Show taxes as.

System tax rates

Some tax rates (like Zero Rated and Exempt) are system-defined and cannot be deleted. They appear with a lock icon.