Tax Settings
Set up manual tax rates for your invoices. Taxes are calculated manually by you.
Important Notice
Paymavo does not automatically calculate Canadian taxes. You are responsible for:
- • Calculating the correct tax rates for your invoices
- • Understanding your tax obligations as a freelancer
- • Consulting with an accountant for complex tax situations
- • Filing your taxes with the appropriate authorities
How Tax Settings Work
Manual tax calculation for your invoices
Default Tax Rate
Set a default tax rate that will be applied to all your invoices. This rate is used consistently across all invoices.
- • Set in your account settings
- • Applied automatically to all invoices
- • Consistent rate for all clients
- • Helps maintain accuracy
Automatic Calculation
Taxes are calculated automatically based on your default rate. The system handles all tax calculations for you.
- • Automatic tax calculation
- • Based on your default rate
- • No manual calculations needed
- • Consistent across all invoices
How to Set Up Tax Rates
Step-by-step guide to configure your tax settings
Access Account Settings
Go to your dashboard and navigate to Account Settings or Profile Settings.
Path: Dashboard → Settings → Account Settings
Set Default Tax Rate
Enter your default tax rate as a percentage (e.g., 13 for 13% HST in Ontario).
Example: For 13% HST, enter "13" (not "0.13")
Save Settings
Click "Save" to apply your default tax rate. This will be used for all new invoices.
Note: This rate will be applied to all your invoices automatically.
Common Tax Scenarios
Examples of how to handle different tax situations
Standard Tax Rate
Use your default tax rate for all clients. This is the most common approach for freelancers.
Example: Set 13% HST for all Ontario clients
Zero Tax Rate
Set your default tax rate to 0% if you don't charge taxes or handle them separately.
Example: Set 0% if you're not registered for HST/GST
Provincial Rate
Use the standard rate for your province (HST, GST+PST, etc.).
Example: 13% HST (ON), 12% GST+PST (BC), 15% HST (NS)
Custom Rate
Set any percentage that applies to your business situation.
Example: 5% for specific services or 20% for luxury items
Important Reminders
Keep these points in mind when setting up taxes
Consult an Accountant
Tax laws are complex. Consult with a professional for advice.
Keep Records
Maintain detailed records of all tax calculations and payments.
Stay Updated
Tax rates can change. Stay informed about updates in your province.
File on Time
Ensure you file your taxes and remit collected taxes on time.
Understand Obligations
Know your tax obligations as a freelancer in your province.
Double-Check Calculations
Always verify your tax calculations before sending invoices.