What tax codes are
A tax code is a named tax rate you apply to transactions. For example:
- “VAT Standard 21%” for Dutch invoices.
- “Sales Tax 8.875%” for New York City.
- “GST 10%” for Australia.
When you create an invoice, you assign a tax code to each line. Dotio calculates tax automatically.
Default tax codes
Dotio comes with the standard tax codes for your country. For most users, you never need to configure anything.
Adding your own
Go to Bookkeeping → Tax Codes → Add. Enter:
- Name — what you’ll call it.
- Rate — the percentage.
- Type — VAT, sales tax, GST, or other.
- Applies to — sales, purchases, or both.
Save.
Zero-rated and exempt
Zero-rated (0%) and exempt (not taxable) are different in tax law even though the number is the same. Dotio supports both correctly.
Reverse charge (EU)
For cross-border B2B within the EU, reverse charge applies — the buyer pays the tax, not the seller. Dotio handles this automatically when the buyer’s country and VAT ID are set correctly on the invoice.