Sales tax basics

Encore Studio can apply a single sales tax rate to your documents. Set it in Settings → Business under "Sales tax rate (%)".

How the rate is applied

• Each line item on a quote or invoice is marked taxable or not — lesson tuition is often exempt while merchandise is taxable, but the rules depend entirely on your jurisdiction.

• Tax is calculated on the taxable lines after promo-code discounts, with the discount spread proportionally across lines, so a discounted order is never taxed on money the client did not pay.

• The tax amount appears as its own line in the document totals.

What Encore does not do

Encore Studio never files or remits sales tax on your behalf. The rate you enter is applied to your documents — collecting the right amount is the software's job; registering, filing, and remitting are yours (or your accountant's).

Should you enter a rate at all?

Only if you are actually registered to collect sales tax where you operate. Many teaching-only studios are not required to collect tax on lessons. If you are unsure, ask a local accountant — then set the rate (or leave it at zero) accordingly.

Changing the rate later

Line items and totals are snapshotted onto documents when they are created, so changing the rate affects new documents — existing sent invoices keep the totals the client already saw.