Sales Tax & VAT Setup

⚙️ 1. Setting Up Tax Rates in Velocity360

You must set up tax rates first, and then apply them to your invoices line by line. This ensures accurate compliance for local sales tax, GST, or VAT requirements.

Tax Rate Configuration

1. From your Velocity 360 dashboard, click Payments > Settings > Taxes.
2. Click Add Tax. Enter the Tax Name (e.g., "Tennessee Sales Tax") and the Tax Rate (e.g., 7.00 for 7.00%).
3. (Optional) Enter your Tax ID and select the States where this tax applies.
4. Click Save.

🧾 2. Applying Tax to an Invoice

Once rates are set, you can easily apply them when drafting an invoice. Taxes are applied on a line-item basis, allowing for products or services with different tax requirements.

Invoice Application Steps

1. Go to Payments > Invoices, and click + New Invoice.
2. Add your product(s) or service(s) to the line items section.
3. In the "Tax" section for each line item, select the tax rate you created.
4. Velocity 360 will automatically calculate the tax amount and add it to the invoice total.

🌍 3. Handling VAT/GST Numbers & International Tax (Coming Soon)

This section will provide guidance on managing sales across different jurisdictions, including the correct display of VAT and GST identification numbers on invoices for international compliance.

📈 4. Tax Reporting and Reconciliation (Coming Soon)

Learn how to generate necessary reports to simplify tax filing. These reports consolidate all collected tax amounts by rate, date, and region.

Reporting Summary

• Accessing the centralized Tax Report dashboard.
• Filtering reports by tax period or state/country.
• Exporting reports for seamless integration with accounting software.

🚫 5. Tax Exemptions and Custom Rates (Coming Soon)

This feature allows you to handle specific client situations where tax does not apply (e.g., non-profits, government entities) or when a temporary custom rate is needed.