Guides

Set up tax

Set up the countries and states you charge tax in, decide whether your prices include tax, and handle exemptions, so each invoice is correct on its issue date.

Two Minute Billing works out tax on every invoice line, from where your customer is and where you are registered. That is why a customer's billing address matters. You set up each place you charge tax once, under Settings → Taxes.

The Taxes screen, listing each tax region with its country, regime, rate, whether prices include tax, registration and status — Tax regions, with the regime, the rate and whether prices include tax.

Add the places you charge tax

Add each country you are registered in. Within it, add the states or provinces where the rules are sub-national.

For each, set the rates. Some places need more than one rate on the same sale — an Indian domestic sale carries CGST and SGST separately, while an inter-state sale carries IGST instead. Both print separately on the invoice, because that is what the document has to show.

Record your registration numbers — in India, the GSTIN for each state you are registered in. Which one applies follows from where you are registered relative to your customer.

Decide whether prices include tax

Setting	Your price of 100 means	Your customer pays
Exclusive	100 before tax	100 plus tax
Inclusive	100 including tax	100

Select the one that matches how you advertise. Most business-to-business sellers quote exclusive. Most consumer sellers quote inclusive.

Tax different products differently

A digital service and a physical good are often taxed differently in the same country. Create a tax profile for each class of product and set which profile a product uses.

Handle exemptions

Situation	What to do
Customer is tax exempt	Mark them exempt on their customer record
Business customer in another country	Record their VAT number — reverse charge applies where the rules allow, and the obligation moves to them
Customer withholds tax and pays it themselves	Set their withholding rate. The invoice shows the full amount and the withheld part separately, so the difference is explained rather than looking like a short payment

Two Minute Billing can check a customer's VAT number against the official register. A wrong number means the tax you did not charge is tax you owe.

Each invoice keeps its own tax

When an invoice is issued, it records the rates, your registration and the place of supply as they were that day.

Changing a customer's address or a rate afterwards does not re-tax a document that already exists. New invoices use the new setup. That is what makes an old invoice still defensible a year later.

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