How to add a sales tax

Perhaps you're the kind of person who likes to get everything set up and organized in advance, or maybe you prefer to tackle tasks as they come up. Either way, we've got you covered.

Wave makes it possible to create Sales Taxes in advance via the Settings menu, or simply add them when you need them as you create an Invoice, or work with Transactions. We've outlined all three options below.

To add a sales tax in Wave from the Settings menu:

  1. Click on the Settings option in the bottom left. 
  2. Select Sales taxes from the Accounting menu.
  3. Click Add a sales tax.
  4. On the Add a sales tax page, enter the Tax Name, Abbreviation and Description.
  5. Additional information:
    1. Your tax number (not required)
      If you'd like to have your tax identification number appear on invoices in which you've charged tax, select the box next to Show Tax Numbers on Invoices.
    2. Select the box next to Is this tax recoverable? if the tax you're collecting is recoverable. (Learn more about recoverable vs. non-recoverable taxes.)
    3. Select the box next to Is this a compound tax? if the tax you're collecting is a compound. (Learn more about compound taxes.)
    4. Enter the Tax Rate (do not include the % symbol)
    5. Click Save.

You will be able to add this sales tax to invoices, bills, and transactions.


To add a sales tax in Wave from the Invoice:

  1. Once you've added an item, click Select a tax.
  2. A drop-down menu will appear. Click Create a new tax.
  3. Fill in the details about the tax itself.
    1. Enter the tax name
    2. Enter the tax rate (just the number, not the % sign)
    3. Enter your tax number (not required)
    4. As outlined above, check the box next to This is a recoverable tax if the tax is recoverable.
    5. Check the box next to This is a compound tax if it IS a compound tax.
    You can also choose whether or not to display the tax number on your invoices.
  4. Click Save.

You're done! You will be able to add this sales tax to invoices, bills, and transactions.


To add a sales tax in Wave from the Transactions page:

  1. Click on a transaction and then click Show Details.
  2. Click on the Taxes field and then Add a new tax.
  3. Fill in the details about the tax itself.
    1. Enter the tax name and abbreviation
    2. Enter the tax rate (just the number, not the % sign)
    3. Enter a description and your tax number (not required). You can also choose whether or not to display the tax number on your invoices.
    4. As outlined above, check the box next to This is a recoverable tax if the tax is recoverable.
    5. Check the box next to This is a compound tax if it IS a compound tax
    6. Click Add tax.