In many countries and jurisdictions, performers are classified as a "service" and not generally subject to sales or value added tax (VAT). This is not universally true and we recommend you consult with the authorities or experts in the regions you perform.
Should you perform in a country or jurisdiction that requires you to collect tax (for example GST or VAT) (and to breakdown applicable taxes on your invoices) this article will provide instructions to calculate taxes on your gigs and customize your invoice template to provide a breakdown of your fee subtotal, applicable taxes, rates, and the combined fee total.
Adding Taxes to Gigs
One key concept in Mago to understand is the fee is the total amount to be charged to the client, in other words, this total is inclusive of all applicable taxes. When creating a new lead/gig, or when you you are adding quotes to a lead/gig, be sure to include the tax in the fee or quote and enter the tax rate in the tax rate field. In the invoice or receipt templates, fields are available to provide a necessary breakdown.
In this image, the fee includes a 22.5% tax. Note that it is not necessary to add a % symbol to the tax rate or express it as a decimal; the field expects the rate to be a percentage already. If you will be regularly entering a tax rate into your leads and gigs, you may set your default tax rate in your business profile.
- Click on the profile icon in the upper right corner.
- Select "My Business"
- Click the pencil icon to edit
Adding a Tax Breakdown to Invoices
The stock Mago invoice templates typically only show fee, deposit, and balance where applicable. There are additional merge fields that breakdown the total.
| Merge Field | "Gig Fields" Menu Item | Purpose |
| $gig_amount | Fee | Fee field from the lead/gig |
| $gig_deposit_amount | Deposit | Deposit field from the lead/gig |
| $gig_deposit_percent | Deposit Percent | Deposit Percent field from the lead/gig |
| [Event.TaxRate] | Tax Rate | The tax rate entered into the lead/gig |
| [EventSubtotal] | Subtotal (full fee) | Fee - Tax |
| [EventDepositSubtotal] | Deposit Subtotal | Deposit - Tax |
| [EventBalanceSubtotal] | Balance Subtotal | (Fee - Deposit) - Tax |
| [EventTax] | Full tax amount | Just the tax portion of the fee |
| [EventDepositTax] | Deposit Tax Amount | The tax portion of the deposit |
| [EventBalanceTax] | Balance Tax Amount | The tax portion of the balance (fee-deposit) |
These fields allow you to modify the invoice template to include a tax breakdown. For example, here is a section of an invoice that is made out for the full balance of the show:
Because this invoice is for the full amount we will bill the subtotal, break down the tax rate and the tax amount, then give the total fee:
Likewise an invoice for the deposit would have the following fields:
The invoice for the balance would look similar:
The balance fields are automatically calculated by subtracting the deposit from the fee.
Conclusion
The additional merge fields enable you to create a template for a tax invoice, just remember the quote amounts and fee must include the tax.