Invoices > Taxes                                 VAT To apply taxes to a new invoice: The method of applying tax to an invoice depends on which tax calculation method is selected in My Account > Company > Settings. If you use the "Federal/state tax by project and vendor" or the "Tax locations" methods, tax is automatically calculated in the invoice. If you use the "tax rate by expense and service" method, you must do the following: 1. In the Account section: Check the "Taxable..." box for the relevant services and expense items at creation (or later by editing the service or expense item). 2. Create timebills using those services and/or expense items. 3. To set the tax rates:     a. Click on the "Options" tab (on the right of the screen) and then the "Invoice Options" sub-tab.     b. Enter the service tax rate (if applicable) and/or the expense item tax rate (if applicable) in their respective fields.     c. Click on "Save." 4. Assemble the taxable (and other) timebills into an invoice. The invoice total will reflect the subtotal plus the tax calculated for the taxable items. To apply taxes to an existing invoice: 1. Select the relevant invoice from the "All Invoices" list. 2. Click on the "Delete" button. This will "free" the invoice's timebills, which will return to the "Open Timebills" list. (Note: You cannot delete an invoice that has had a payment made against it.) 3. Follow Steps 1 - 4 in "To apply taxes to a new invoice" above. To apply VAT (value-added tax) to invoices, and to record VAT for expenses incurred: (Note: This section is relevant only to companies in countries that have VAT; the U.S. does not.) 1. If you are not currently VAT-enabled, contact OpenAir Support via email at support@openair.com, or by phone at 1-617-351-0226, Mon-Fri, 9am-5pm Eastern Time. VAT-specific fields will not appear in the dialogs mentioned below if you are not VAT-enabled. 2. If enabled, go to the Company > Demographics dialog in the My Account module, and enter your VAT registration number in the appropriate field. 3. Go to the Company > Settings dialog in the My Account module, and enter the VAT rate (as a percentage) in the field found under the heading "VAT Settings." Please note that this rate will override any tax rates you may have previously set for services and expenses in the Invoice Layout > General dialog. 4. Two VAT-specific fields, "Tax paid" and "Price includes tax," will now appear adjacent to the "Price" field in all Receipt, Foreign currency receipt, and Expense timebill dialogs. Enter the price paid for an item or service in the "Price" field, and enter any VAT you paid on that item or service in the "Tax paid" field. If the amount in the "Price" field represents the total cost (base price + VAT) of the item or service, be sure to check the "Price includes tax" box. As an example, if you have an expense for £52.50, £2.50 of which is tax, you could either enter "50.00" in the "Price" field, "2.50" in the "Tax paid" field, and leave the "Price includes tax" check box disabled, or enter "52.50" in the "Price" field, "2.50" in the "Tax paid" field, and enable the "Price includes tax" check box. 5. When you create your invoices from your expense timebills and/or from the timebills created from your receipts, the VAT you paid (the Input tax) is deducted from the cost of the item or service listed, and the VAT that you are passing on to your client (the Output tax) is automatically calculated and included in the invoice total.