How to add, edit, and delete sales taxes

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 page, or simply create them when you need them while drafting an invoice, bill, or working with transactions. We've outlined all three options below.

All sales taxes you create can be found under Settings > Sales Taxes in your Wave account, regardless of whether they were created directly through the Settings page, or from the Invoices, Bills, or Transactions pages. Once you’ve created a new sales tax through any of the below methods, you will be able to add it to your invoices, bills, and transactions.


How to add a sales tax in Wave from the Settings page

How to add a sales tax in Wave from an invoice

How to add a sales tax in Wave from a bill

How to add a sales tax in Wave from the Transactions page

How to edit a sales tax

How to delete a sales tax


How to add a sales tax in Wave from the Settings page

  1. Click Settings on the bottom left of the navigation menu.
  2. Select Sales Taxes under the Accounting heading.
  3. Click Create a sales tax.
  4. On the Create a sales tax page, enter the tax name, abbreviation, and description (optional).
  5. Enter your tax number (this is optional).
    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.
  6. If the tax you’re collecting is recoverable, select the box next to This tax is recoverable.

    Learn more about recoverable vs. non-recoverable taxes.

  7. If the tax you’re collecting is a compound tax, select the box next to This is a compound tax.
  8. Enter the tax rate (do not include the % sign).
  9. Click Save.

How to add a sales tax in Wave from an invoice

Navigate to Sales > Invoices to create a new invoice.

  1. Once you've added an item on the invoice, click Select a tax.
  2. Click Create a new tax from the drop-down menu.
  3. Fill in the details about the tax:
    1. Enter the tax name.
    2. Enter the tax rate (only the number, not the % sign).
    3. Enter your tax number (this is optional).
    4. If the tax you’re collecting is recoverable, select the checkbox next to This tax is recoverable.
    5. If the tax you’re collecting is a compound tax, select the checkbox next to This is a compound tax.
  4. Click Save.

How to add a sales tax in Wave from a bill

Navigate to Purchases > Bills to create a new bill.

  1. Once you've added an item, click the Tax field and select Add new tax from the drop-down menu.
  2. Fill in the details about the tax:
    1. Enter the tax name and abbreviation.
    2. Enter the tax rate (only the number, not the % sign).
    3. Enter a description (this is optional).
    4. Enter your tax number (this is optional).
      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.
    5. If the tax is recoverable, select the checkbox next to This tax is recoverable.
    6. If the tax is a compound tax, select the checkbox next to This is a compound tax.
  3. Click Save.

How to add a sales tax in Wave from the Transactions page

Navigate to Accounting > Transactions, click on the drop-down arrow to the right of a transaction, and select Edit more details.

  1. Underneath the Category dropdown box, click on the Include sales tax link, and then the Create new tax link.
  2. Fill in the details about the tax:
    1. Enter the tax name and abbreviation.
    2. Enter the tax rate (only the number, not the % sign).
    3. Enter a description and your tax number (optional). You can also choose whether or not to display the tax number on your invoices.
    4. 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.
  3. Click Save.

Navigate back to the Transactions page (Accounting > Transactions). You can now include the new sales tax on your transactions.


How to edit a sales tax

    1. Navigate to Settings > Sales Taxes.
    2. Click on the pencil icon to the right of the sales tax you want to edit.
    3. Edit the required fields. The tax name, abbreviation, description, and tax number can be edited. It is also possible to enter in a new tax rate and the effective date if your tax rate changes.

Once a sales tax has been created, the checkboxes to set a tax as recoverable, or compound will be greyed out, and you cannot edit this later. If you may have accidentally set these fields incorrectly, you will need to create a new sales tax. Make sure to edit all invoices, bills, and transactions to update the sales tax to the correct one.


How to delete a sales tax

  1. Navigate to Settings > Sales Taxes.
  2. Click on the trash can icon to the right of the tax you want to delete.
  3. You will see a warning that this action cannot be undone. Click on OK to proceed with deleting the tax.

Deleting a sales tax does not remove the tax previously added on invoices, bills, or transactions. You will need to manually edit them to remove the tax, or update them to include a new sales tax. Deleted sales taxes will appear on the Chart of Accounts page under Accounting, with an Archived tag beside it.