Set up the tax model that fits your business, apply the right rate or rule to each client and document, and use Moxie’s accounting workbook to understand the tax collected from payments.
Tax requirements vary by location and business. Moxie records and reports the choices you make, but it does not determine your registration, filing method, deductions, or amount legally due. Confirm those requirements with your tax professional.
Before you begin
A workspace owner configures tax modes and defaults under Settings → Preferences → Invoices.
Tax applies only to invoice or agreement items marked taxable. Non-taxable items remain outside the taxable subtotal.
If QuickBooks or Xero is your accounting source of truth, connect it before choosing Integrated mode.
Choose a tax mode
Turn on Tax enabled on invoices, then choose one of three modes:
Basic: one percentage
Use Basic when each document needs one editable tax percentage. Set a workspace default rate and a label such as Tax, GST, VAT, or ISV. A client can have a different default percentage, and you can change the percentage on an editable document.
Basic mode keeps one tax row on the invoice. It is also the compatibility path for historical invoices created before multi-component rules were available.
Advanced: reusable multi-tax rules
Use Advanced when a document may need several Moxie-managed tax components. Create a named rule, add its components in calculation order, and choose whether each component is stacked or compounded.
Stacked components each apply to the original taxable subtotal.
Compounded components apply to the original taxable subtotal plus tax from earlier components.
Example on a $100.00 taxable subtotal | Component amounts | Total tax | Invoice total |
5% + stacked 9.975% | $5.00 + $9.98 | $14.98 | $114.98 |
5%, then compounded 9.975% | $5.00 + $10.47 | $15.47 | $115.47 |
Moxie rounds each component to the invoice currency’s precision before using it in a later compound calculation. For that reason, use the stored component amounts—not the displayed effective percentage multiplied by the subtotal—when reconciling tax.
Integrated: QuickBooks or Xero rules
Use Integrated when QuickBooks or Xero should control the available tax codes. Choose the connected provider and a default provider rule. Moxie refreshes the provider catalog when invoice preferences load and keeps the provider’s native tax-code identity with the document for synchronization.
QuickBooks combined and tax-on-tax codes and Xero multi-component or compound rates are converted into the same ordered component model Moxie uses for calculation and display. Manage the underlying definitions in QuickBooks or Xero, then reopen invoice preferences to refresh them in Moxie.
If you synchronize taxed invoices to an accounting provider, Integrated mode is the safest choice for provider fidelity. A Moxie-managed Advanced rule may not have an equivalent native QuickBooks or Xero tax code.
The selected mode controls which tax choices appear on new invoices, agreements, recurring invoices, and payment-plan invoice templates.
Understand defaults and document snapshots
For a new invoice or agreement, Moxie looks for tax defaults in this order:
The client’s default percentage or tax rule.
The workspace default percentage or tax rule.
The connected provider’s sales-tax default in Integrated mode, when no more specific default is selected.
Edit a client to set its tax percentage in Basic mode or its default rule in Advanced or Integrated mode.
When a rule is selected, Moxie saves a copy with the invoice or agreement. Later edits to the workspace rule or provider catalog do not rewrite an existing document. Recurring invoices, payment plans, duplicate invoices, and invoices generated from signed agreements carry their saved tax selection forward.
Apply and review tax on a document
Mark each billable line that should be taxable.
Open Fees & tax in the invoice builder and confirm the percentage or rule.
Review each component amount and the final total before sending.
Invoice discounts reduce the taxable base using Moxie’s normal proportional discount behavior. If Apply tax to late fees is enabled, taxable late fees also contribute to tax. Show tax on 0% invoices controls whether a zero-tax row remains visible.
Multi-component taxes appear separately in the builder totals, saved invoice, client portal, and invoice PDF. Older invoices without a multi-tax snapshot continue to show one aggregate tax row.
Report tax collected from payments
Open Money → Reports, choose the filing window, and select Export accounting workbook.
The report uses complete calendar months and received-payment activity rather than sent-invoice dates.
The Include collected taxes switch changes the Money In KPI, chart, monthly table, and P&L sheet:
On: Money In includes the full amount received, including collected tax.
Off: Money In removes the tax allocated to received invoice payments.
The accounting workbook includes its tax sheets either way:
Taxes collected summarizes each tax component by name, component ID, rate, compound status, payment currency, tax collected, tax converted to workspace currency, and invoice and payment counts.
Tax detail shows the payment window, client and client tax ID, invoice, component, rate, compound status, taxable amount, invoice tax, payments collected, tax collected, currency conversion, exchange rate, and invoice link.
Use the workbook to prepare a remittance
Choose a report window that matches the payment dates in your filing period. Moxie expands the selection to complete calendar months.
Open Taxes collected and identify the component rows that belong to each authority or return.
Use Tax collected when filing in the payment currency, or Tax collected in [workspace currency] when your return uses the converted workspace amount.
Use Tax detail to reconcile a summary amount to its invoices, clients, payments, taxable bases, and exchange rates.
Apply any credits, refunds, input-tax deductions, prior-period adjustments, or transactions recorded outside Moxie according to your filing requirements.
Moxie’s tax export is cash-basis: an unpaid invoice contributes no collected tax. A partial payment allocates each tax component proportionally; the final payment receives any remaining cents needed to reconcile to the invoice’s tax total.
If your authority requires accrual- or invoice-date reporting, or a filing period that does not align with complete calendar months, do not treat this workbook alone as the amount due. Use the detail sheet with your accounting records and tax professional.
Troubleshooting
A provider rate is missing: confirm the QuickBooks or Xero connection, manage the rate in that provider, then reopen invoice preferences to refresh the catalog.
A new document chose the wrong rule: check the client default first, then the workspace default.
An old invoice did not change after a rule edit: that is expected; documents keep their saved tax snapshot.
Tax is missing from the workbook: confirm the invoice has a positive tax amount and received payment dated inside the selected window.
The summary and a manual percentage calculation differ by a cent: reconcile with component amounts in Tax detail because Moxie rounds each component before later compound calculations.
Related articles
Continue exploring Money