---
title: "Using Taxes"
slug: "using-taxes"
updated: 2025-12-01T12:00:36Z
published: 2025-12-01T12:00:36Z
canonical: "help.elorus.com/using-taxes"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.elorus.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Using Taxes

When you create your organization in Elorus, the most commonly used taxes (VAT and withholdings) are activated automatically.

In addition to the available taxes, you can add new ones based on your needs.

You can apply taxes to:

- Invoices, Estimates, etc.
- Expenses or Bills
- Products/Services added to a document.

To add or manage taxes, go to **Settings > Taxes** from the main menu.

## Using taxes during invoicing

### VAT

When creating an invoice, VAT classification is required for submitting the document to myDATA. VAT **is applied exclusively as line taxes**, and it is calculated on the net value of each product or service.

![Using VAT as a line tax](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/20.png)

You can modify the VAT amount—just like any other line tax—by selecting **Edit tax amounts**. In the pop-up window, disable *Auto calculate* field and enter the tax amount manually.

![Edit manually the VAT amount](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/21.png)

When this is done, Elorus displays an indicator showing that the tax amount has been edited manually.

![Ιndication that the line contains custom tax amounts](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/22.png)

### Withholding taxes

Withholdings and deductions are applied as global taxes on the document total, provided they apply to all invoice lines.

![Add withholding taxes](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/23.png)

Once you add a tax as a global tax, Elorus automatically calculates its amount. However, you can edit it by clicking the *lock icon*, as shown in the example below.

![Edit the amount of a withholding tax](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/24(1).png)

You can add multiple withholdings and deductions and choose whether each amount should be calculated automatically by Elorus or entered manually. If you enter an amount manually, Elorus will adjust the total tax amount accordingly.

![Add multiple withholding taxes](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/25.png)

Automatic tax calculation

Automatic tax calculation is applied when the tax value is set as a percentage or a fixed amount. If the tax is defined as a **variable amount**, you must **enter its value manually** each time, since it differs from case to case.

By dragging the corresponding widget up or down, you can adjust the tax order, which also determines how they appear on the printed version of the document.

![Adjust the tax order](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/31.png)

If a withholding is calculated based on the amount that results after another withholding has been applied—rather than on the net value—you should use subtotals.

![Subtotals icon](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/26.png)

By clicking the corresponding widget, as shown in the image above, the related subtotals will appear.

![Applied subtotals](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/27.png)

By using the *pencil icon* next to each subtotal, you can choose to exclude all previously applied withholdings or only the specific withholding.

If a withholding applies only to part of the document, it can also be added as a Line tax, provided that the **Let me apply this tax on the document lines as well** option was enabled when creating or editing the tax.

![Add a withholding tax as a line tax](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/28.png)

If you want to remove one or more taxes, click the delete *x* icon located next to the *lock*.

### Simple taxes

These taxes can be applied either as line taxes or as a global tax on the document total.

If they are applied as line taxes along with other taxes (e.g. VAT), you may edit each tax amount individually using the same steps described earlier.

![Edit the tax amount the VAT applied to it](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/29.png)

If a simple tax is subject to VAT, you can edit both the amount of the tax itself and the VAT applied to it, as shown in the example above.

Taxes subjected to VAT

Taxes that are subject to VAT must be added as line taxes, so they can be correctly associated with the VAT calculated on that tax.

If such taxes are added as global taxes, they must apply to all invoice lines.

![Add a global tax](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/30.png)

Managing taxes in the totals

Similar to withholding taxes, you can set the amount of a simple tax manually, delete it, add multiple taxes and adjust its order.

## Default taxes

### Per contact

When [adding or editing a contact](/docs/add-contacts), you can set a default tax that will be applied whenever you issue documents to that client.

![Set a default tax when adding or editing a contact ](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/32.png)

### Per product / service

When [adding or editing a product or service](/docs/add-productsservices), you can set a default tax that will be applied when issuing sales or purchase documents that include it.

![Set a default tax when adding or editing a product or service](https://cdn.document360.io/9493d4a2-f3a8-4344-ad47-a4f5aeb61ce6/Images/Documentation/33.png)

Tax priority

When invoicing [inventory items](/docs/add-productsservices) it is possible to have default taxes set on both the contact and the product. **Contact taxes always have a higher priority**, so in this case the item’s tax will not be used.