Managing Taxes in Enlivy — Invoicing & Tax

Tax Classes and Tax Rates allow Enlivy to automatically determine the correct tax for your products and services.

Instead of selecting a tax rate every time you create an invoice, you simply assign a Tax Class to a product once. Enlivy then automatically chooses the correct Tax Rate based on your customer’s location and tax status.

This guide explains how to create a Tax Class and add a Tax Rate to it.

Open the tax settings

From the Enlivy dashboard, navigate to Settings → Accounting → Taxes.

Here you’ll see the Tax Classes dashboard. A Tax Class determines how products and services are taxed across your organization.

The Tax Classes dashboard in Enlivy listing built-in classes such as General services and Digital services & SaaS with their rate coverage — Tax Classes dashboard.

Create a Tax Class

Click Add Tax Class. A popup window will appear asking for basic information.

The Add Tax Class dialog with the Name field filled in as Services, plus the Display Name, Description, Imported Form and Imported Hash fields — Add Tax Class dialog.

Complete the Tax Class information

Name: The internal name of the Tax Class. Choose a descriptive name that reflects the products or services it will be used for — for example Services, Physical Products, or Digital Products.
Display Name: The name that will appear on invoices and other customer-facing documents. Common examples include VAT, GST, and Sales Tax.
Description: Optionally provide additional information about when this Tax Class should be used. The description supports Markdown formatting.
Imported Form: Used for imported tax data. Most organizations can leave this field empty.
Imported Hash: Internal field used when importing tax information from external systems. This can usually be left empty.

In this example we create a Tax Class called Services. Optionally, we also add a Display Name and a short description. When finished, click Add Tax Class.

Open the Tax Class

Click the newly created Tax Class. Initially, it won’t contain any Tax Rates.

You’ll also find a simulation tool that lets you test how Enlivy chooses tax rates for different customers and countries.

The newly created Services Tax Class with no tax rates yet, next to the Simulate Mapping panel warning that no tax rate matches the customer — Newly created Tax Class.

Add a Tax Rate

Click Add Tax Rate. A new window will open where you can configure the tax rules for this Tax Class.

The empty New Tax Rate dialog showing the Tax Rate Information, Rate, and Applies to sections — Add Tax Rate dialog.

Configure the Tax Rate

Name: The internal name of the tax rate — for example Romanian VAT - Business.
Display Name: The name shown on invoices, such as VAT, TVA, or GST.
Tax Class: Select the Tax Class this rate belongs to. In our example, Services.
Has EU VAT Properties: Enable this option if this tax rate follows European Union VAT rules.
Has VAT Exempt: Enable this option for VAT-exempt tax rates.
Rate: Enter the tax percentage — for example 21%.
Is Compound: Enable this if the tax should be calculated on top of another tax. Most organizations should leave this disabled.
Is Inclusive: Enable this if product prices already include tax. Leave it disabled if tax should be added on top of the product price.
Applies To: Choose which customers this tax rate applies to: all customers, businesses only, or individuals only.
Is Location-Based Tax Rate: Enable this option if the tax rate depends on the customer's location.
Has Stripe Tax Rate ID: Optionally link this tax rate with a Stripe Tax Rate. This is only required if you're using Stripe Tax.
Priority: Defines which tax rate should be evaluated first when multiple tax rates could apply. Lower priority values are evaluated before higher ones.

Tax Rate Locations

Specify where this tax rate applies. You can configure:

Country
State / Department (optional)
Municipality (optional)
ZIP Code restrictions (optional)

Multiple locations can be added if needed.

Example

In this example, we create a tax rate for Romanian VAT, using Romanian VAT - Business as the name, TVA as the display name, the Services Tax Class, a rate of 21%, and Romania as the country.

This means that products assigned to the Services Tax Class will automatically receive a 21% VAT rate whenever the tax rules determine that Romanian VAT should apply.

After reviewing the information, click Add Tax Rate.

The New Tax Rate dialog filled in with Romanian VAT - Business, display name TVA, a 21% rate limited to businesses only, and Romania added under Tax Rate Locations — Completed Add Tax Rate form.

Tax Rate created

Your new Tax Rate now appears inside the selected Tax Class.

From here you can:

Edit the tax rate
Add additional tax rates for other countries or customer types
Create VAT-exempt rules
Add reduced tax rates
Test the mapping using the built-in simulation tool