Before you start sending quotes and purchase orders, you'll need to set up your taxes in Hoops.
Hoops supports both simple taxes (such as GST or VAT) and more complex nested taxes made up of multiple tax rates. Once configured, your taxes can be applied throughout SalesDocs and Purchase Orders.
Step 1: Open Tax Settings
From the main menu, click Settings → Taxes.
When setting up a new Hoops account, this list will be empty.
Click New Tax to create your first tax.
Step 2: Create Your First Tax
Enter a name for your tax, for example:
GST
VAT
Sales Tax
Next, choose the Tax Type:
Revenue – Used on SalesDocs.
Expense – Used on Purchase Orders.
Finally, enter the tax rate and click Save.
For a simple tax such as 10% GST, a single tax rate is all that's required.
Step 3: Create Nested Taxes (Optional)
If your location requires multiple tax rates to be combined, Hoops allows you to create nested taxes.
For example, a combined sales tax could include:
State Tax – 6.00%
Local Tax – 1.25%
District Tax – 0.50%
Hoops automatically combines these into a single tax that can be applied wherever needed.
Step 4: Add Additional Taxes
Repeat the process to create any additional taxes your business requires.
We also recommend creating an Exempt tax with a 0% rate. This makes it quick and easy to apply tax-exempt pricing whenever required.
Step 5: Set a Default Tax
To automatically select a tax when creating new SalesDocs or Purchase Orders, open the Actions menu beside the tax and choose Set as Default.
You can also use this menu to edit or delete existing taxes.
Using Your Taxes
When creating a SalesDoc or Purchase Order, you'll be able to select from all of the taxes you've configured.
Your default tax will be selected automatically, helping you create documents faster while ensuring consistent tax calculations.
