This guide shows you how to configure tax rates across your Studio, projects, Schedules, invoices, and Purchase Orders so you can ensure accurate tax calculations wherever you are in the world.
Setting up tax rates at Studio level
Before applying tax to any project, you'll need to create your tax rates in your Studio settings. Programa supports both single and combo tax rates.
Prerequisite: You must have admin access to your Studio settings to configure tax rates.
Creating a single tax rate
A single tax rate is an individual rate for a country or region for example, GST in Australia or Canada
Head to your account Settings via the dropdown menu next to your studio name.
Select the tax tab
Click + Add Tax Rate.
Select the Single tab.
Enter the Name of your tax rate (this is how it will appear on your Schedule).
Enter the tax Rate.
Add a Description (an explanation or expansion on your rate's name).
Choose whether to set this as your default rate.
Click Add Tax Rate to save.
Creating a combo tax rate
A combo tax rate is made up of multiple rates for a country or region, for example, state and local sales tax in the USA.
Head to your account Settings via the dropdown menu next to your studio name.
Select the Invoicing tab and scroll to Tax Settings.
Click + Add Tax Rate.
Select the Combo tab.
Enter the Name of your tax rate.
Add a Description.
Enter a Nickname and Rate for each rate within your combo, selecting + Add another rate for each new entry. The total percentage will populate below.
Choose whether to set this as your default rate.
Click Add Tax Rate to save.
Setting a tax rate as default
When you select Set as default, this rate will auto-populate for each new project you create. Your default tax rate will be highlighted in Settings, and you can update this at any time.
You can still switch between your saved tax rates at project level — the default simply sets the starting point.
Archiving a tax rate
If you no longer want to use a specific tax rate, you can easily archive it.
Head to Settings > Tax.
Click the three-dot menu at the end of the tax rate entry.
Select Archive.
Note: Any archived tax rates previously applied to projects will remain on those projects, but they won't be available for future projects.
You can view archived rates by toggling between the All and Archived tabs, and re-activate a rate from the three-dot menu at any time.
Applying tax rates at Project level
Once your tax rates are configured at Studio level, you can assign them to individual projects.
Prerequisite: You must have a default tax rate selected in your Invoice Settings before applying tax at project level.
Click the 3-dot icon on your project card, and select Settings to access project settings.
In the Details tab, scroll to Tax Preferences and toggle on the Tax switch.
From the dropdown menu, select which tax rates to apply. You can select multiple rates if more than one applies.
Choose whether pricing in your Schedule should be calculated inclusive or exclusive of tax.
Click Save.
Applying tax rates in your Schedule
With tax configured at both Studio and Project level, you can control tax on individual products within your Schedule.
Marking a product as taxable
The tax rates set at Project level are applied to all items added to your Schedule by default.
Navigate to the Financial tab in your Schedule.
Click the tax field next to a product to open the tax widget.
Toggle off the setting if the product is not taxable.
How tax calculations work
Tax applied before entering products
When tax is configured at project level before products are added to your Schedule, the inclusive or exclusive setting determines how pricing displays from the start.
Exclusive: Tax is calculated on top of the product cost.
Inclusive: The product cost already includes the tax component.
Tax applied after entering products
When tax is added to a project after products are already in the Schedule, the calculation fields on your products will update to reflect the new tax setting.
Note: See the examples below for a visual comparison of inclusive vs. exclusive pricing with a 10% tax rate applied before and after product entry.
Tax and markup
Tax and markup work independently. Your markup total is based on the markup percentage you've applied to the original product cost. Whether markup is active or not, the tax rate applies to the original cost — you cannot add markup on tax.
How tax is displayed to clients
When your client has access to your Schedule pricing via the Client Dashboard, the tax component appears against each line item in the Financial tab. Prices will indicate whether they are inclusive or exclusive of tax.
Applying tax rates to invoices
When creating invoices, your project-level tax rates carry over automatically.
Create a new invoice and select your client from the Client dropdown. The tax rate(s) from the project will auto-populate in the Tax field.
Click the Tax field to review pre-selected rates or add additional rates.
To mark an individual line item as non-taxable, click the line item to edit and toggle off the Taxable? field.
Click Save.
Note: New to invoicing? Check out our guide on how to create invoices
Syncing invoices with QuickBooks or Xero
If you've connected your accounting software to Programa, you can sync your products and services to the relevant accounts. Learn how to connect your [QuickBooks account] or [Xero account].
Select the relevant revenue/income accounts from the field provided.
Click Save.
Setting up tax rates for Purchase Orders
Before creating a Purchase Order, you'll need to configure tax settings specific to your Purchase Order workflow.
Select the cog icon at the top right of your Purchase Order Dashboard (next to the 'Create order' button).
Click + Add Tax Rate.
Enter the tax Rate.
Select a Tag.
Enter a Display name and Description.
Click Add Tax Rate to save.
Common questions
How can I apply sales tax to only specific items in my Schedule?
Your project-level tax rate applies to all Schedule items by default. To mark an item as non-taxable, click the arrows next to the item's Tax field and toggle off the Product is taxable? setting.
If a supplier hasn't specified whether a product is inclusive or exclusive of tax, which should I choose?
Add the product as exclusive of tax so you can apply the tax component later if needed.
I want to archive a tax rate but don't want to lose the tax applied to a project. Archived tax rates remain attached to any projects they were previously applied to. The rate will appear greyed out in that project's available rates, but it won't be usable for future projects.
I archived a tax rate by mistake — how do I restore it?
Head to Settings > Invoicing > Tax Settings, click the Archived tab, then use the three-dot menu next to the rate and select the option to re-activate.
How will my client know if items are inclusive or exclusive of tax?
If you've shared a live Schedule with pricing access, clients will see the tax rate applied against each product, along with a "Pricing inclusive" or "Pricing exclusive" indicator next to the Schedule totals.
How does tax affect existing projects that don't have tax applied?
Existing projects have the tax component turned off by default. To add tax, first set up your tax rates in Settings > Invoicing > Tax Settings. If you try to add tax directly to a Schedule item before configuring this, you'll be prompted to set it up first.
Need more help with tax rates? Contact our support team via live chat for personalized assistance.