If a supplier hasn't stipulated whether a product is inclusive or exclusive of tax, which option should I choose?
If a supplier hasn't specified the tax rate, we'd recommend adding this product exclusive of tax, so you can add this component at a later stage, if required.
I want to archive a tax rate, but I don't want to lose the tax applied to a project
You won't! Any tax rates previously applied to a project will still be attached to it - it'll be greyed out in that project's available tax rates, but will still show that you've selected it. You just won't be able to use this rate for future products.
Help! I archived a tax rate by mistake!
Not to worry! If you head back into your Studio Settings > Invoices > Tax Settings, and click on the 'Archived' tab, you can select the 3 dot menu against your required tax rate, and choose the option to re-activate
How does adding a markup affect the tax rate?
It doesn't. Tax and markup work independently from one another - your markup total is based on the markup percentage you've added. Whether you've turned on 'Add Markup' or not, your tax rate will still apply to the original cost of the product, as you're unable to add a markup on tax.
How will my client know if items are inclusive or exclusive of tax?
If you've shared a live version of your Schedule, with access to the pricing information, they'll see the tax rate applied against the product, with a 'Pricing inclusive' or 'Pricing exclusive' indicator against the Schedule totals.
How will tax affect existing projects without tax applied to them?
Existing projects will, by default, have the tax component turned off.
If you'd like to enter tax against an existing project, you'll first need to head into your Studio Settings > Invoices > Tax Settings and set your tax rate(s). If you try to add tax directly into a Schedule item before having set this up, you'll receive a prompt to head to your settings first.
Note: See 'Example 2' below to understand what happens to the calculation fields on your products when tax is added.
How does changing the tax rate affect my Schedule pricing?
We've put together a couple of visual guides below to show examples of how input fields are affected when your projects are inclusive of tax, vs exclusive of tax; applied before and after products have been entered into your Schedule.
Example 1 - Tax applied before entering products
Here we're looking at the same product, one has been added to a schedule with tax excluded at project level, and the other has been added to a schedule with tax included at project level:
Exclusive
Inclusive
Example 2 - Tax applied after entering products
Here we're looking at the same product again, and we see what happens when tax is applied at project level after your products have already been entered into the Schedule.
Exclusive (original - no tax applied)
Inclusive (tax applied after entry)
Why isn’t my tax rate calculating correctly?
Here’s how tax settings work in Programa:
Non-taxable: No tax is applied to the product.
Tax exclusive: Tax is added on top of the product price, so the total increases.
Tax inclusive: Tax is already included in the product price. You’ll still see the tax amount, but it won’t increase the total.
Please check whether your project’s tax preference is set to Tax Exclusive or Tax Inclusive. To do this, go to Project Settings > Details > Tax. Learn more about it here: How to set up and manage tax rates