Set a tax default for sales or purchases

Set your organisation's tax default for sales (invoices, quotes, credit notes, receive money) or purchases (bills, credit notes, purchase orders, or spend money). The organisation tax default doesn't override an individual contact's.

Four tax default options

  • Based on last sale (or purchase)
  • Tax inclusive
  • Tax exclusive
  • No tax

Set your organisation's tax default

  1. In the Settings menu, select General Settings.
  2. Under Organisation, click Financial Settings.
  3. Under Tax Defaults, select the sales or purchases tax default.

    Image of the Tax Defaults settings on the Financial Settings screen.

  4. Click Save.

When you next add an invoice, quote, credit note, bill, purchase order, spend or receive money, the selected tax default shows in the Amounts are field. You can edit this.

If you've set your sales or purchases tax defaults as tax inclusive, when approved, each item will show as tax exclusive. Xero automatically splits out the tax component for reporting.

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