Documentation
Taxes
Add the tax rates you charge, by country, so every Invoice and portal checkout adds the right tax automatically.
Taxes is where you list the tax rates you charge your Customers — for example GST 18% for India or VAT 20% for the United Kingdom. Each tax belongs to one country. When a Customer in that country is billed, every active tax for their country is applied to the Invoice automatically — you never pick taxes by hand on a Purchase.
What you can do here
- Add a tax for a country, as a percentage.
- Choose whether the tax is inclusive (already inside your price) or exclusive (added on top).
- Edit a tax's name, description, percentage, country or how it applies.
- Archive a tax so it stops applying, and restore it later.
- Switch between Active and Archived taxes.
Owner or admin only
Adding, editing, archiving and restoring taxes is available to owners and admins. Members can see the list but can't change anything.
How a tax is chosen
ClockNext looks at the Country in the Customer's billing address (see Customers):
- Every active tax for that country applies — a country can have more than one (for example CGST and SGST).
- A Customer with no country, or a country with no taxes, is charged no tax.
- Free Plans and $0 charges have no tax.
Taxes apply to every Invoice raised from a Purchase (the first one and each recurring one) and to everything a Customer pays for in the Customer portal — Plan upgrades, Wallet top-ups and Credit, Outcome or Unit purchases. Balance changes an owner or admin makes by hand on a Customer's page are not taxed.
Inclusive and exclusive
| How it applies | Meaning | $100 price, 18% tax |
|---|---|---|
| Inclusive (default) | The tax is already inside your price. | Customer pays $100.00 — of which $15.25 is tax. |
| Exclusive | The tax is added on top of your price. | Customer pays $118.00 — $100.00 + $18.00 tax. |
An inclusive tax is worked out as price × rate ÷ (100 + rate), not
price × rate ÷ 100: $100 already contains the tax, so the price before tax is
$100 ÷ 1.18 = $84.75, and the tax is the remaining $15.25.
When a country has both kinds
Inclusive taxes are taken out first, then exclusive taxes are added on the price without tax — so a tax is never charged on another tax.
Example — a $104.00 Invoice for a Customer in India with VAT 15% inclusive and GST 50% exclusive:
| Step | Calculation | Amount |
|---|---|---|
| Subtotal | $104.00 | |
| VAT, inclusive (already inside) | 104 × 15 ÷ 115 | $13.57 |
| Price without tax | 104 − 13.57 | $90.43 |
| GST, exclusive (added on top) | 90.43 × 50% | $45.22 |
| Total due | 104.00 + 45.22 | $149.22 |
When a country has several inclusive taxes, their rates are added together and taken out of the price once, then split between them by size. Every tax is rounded to the cent.
On this page
When you have no taxes yet, an empty card invites an owner or admin to Add your first tax. Once taxes exist, an Add tax button sits in the header and an Active / Archived switch sits above the table.
| Column | What it shows |
|---|---|
| Name | The tax name, as printed on Invoices. |
| Country | The country it applies to, with its flag. |
| Rate | The percentage. |
| Applies | Inclusive or Exclusive. |
| Created | When the tax was added. |
The per-row ⋮ menu offers Edit and Archive on active taxes, and Edit and Restore on archived ones.
Adding a tax
-
Press Add tax (or Add your first tax).
-
Fill in the dialog:
Field Notes Name Required, up to 100 characters. Shown on Invoices, e.g. "GST". Description Optional, up to 500 characters. Only you see it. Percentage Required, from 0 to 100. Country Required. Search and pick from the list. How it applies Inclusive (the default) or Exclusive. -
Press Create tax.
Two active taxes can't share the same name in the same country (capital letters don't count as different). The same name is fine in another country.
Editing a tax
Open ⋮ → Edit, change any field and press Save changes. An edit only affects Invoices raised after it — every Invoice keeps a copy of the taxes it was issued with, so issued Invoices never change.
Archived taxes can be edited too; they stay archived until you restore them.
Archiving and restoring
⋮ → Archive asks you to confirm, then moves the tax to the Archived tab. An archived tax no longer applies to new Invoices; Invoices already issued keep it. Nothing is deleted.
Open the Archived tab and use ⋮ → Restore to make a tax active again. Restore is refused if an active tax with the same name already exists in that country.
Where taxes show up
- Purchase dialog — the order summary shows Subtotal, Tax (hover the ⓘ for each tax) and Amount due before you save. See Purchases.
- Invoices and their PDFs — a Subtotal row, one row per tax (an inclusive tax reads "Includes VAT (15%)") and the Total due. See Invoices.
- Checkout — the portal checkout lists the same rows before the Customer pays; an Invoice's payment page shows the total due. Stripe and Paddle are charged that single total.
- Revenue — tax is money you collect for the government, so it is not counted as revenue. See Revenue dashboard.
Payment receipts show the total paid only, without the tax breakdown.
Related
- Customers — the billing country decides which taxes apply.
- Invoices — where the applied taxes are printed.
- Customer portal — portal purchases are taxed too.