Invoice Tax Modes Explained: None, Included, and Custom

Tax handling on invoices can be confusing, especially when different line items have different tax treatments. Next Invoice simplifies this with four per-item tax modes.

None (Default): The item uses the global invoice tax rate. This is the simplest option - set a tax rate at the invoice level and it applies to all items marked as "None."

No Tax: The item is explicitly tax-free. This is useful for exempt services or products. The invoice will display "No Tax" next to the item so your client understands why no tax was charged.

Tax Included: The price you entered already includes tax. Next Invoice will calculate and display the tax component separately. The invoice shows "Tax Included" for transparency.

Custom Tax %: Set a specific tax percentage for this item. This is perfect when different items have different tax rates - for example, goods at 20% and services at 5%.

These modes can be mixed within a single invoice. The totals section automatically calculates the correct tax amount based on each item's mode. No spreadsheets required.