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Tax rates

The percentages your invoices, estimates and bills are priced with, which rate a new document picks up, and why changing one leaves everything you have already raised alone.

Where to find it
AccountingTaxesTax rates
Permission needed
Tax filing configuration and tax rates.
Last checked
August 16, 2026

What this screen decides

The Tax rates screen listing three rates. Sales Tax 10% carries a blue Default chip, reads 10%, is Active, and its Applied to new documents column reads "Yes, on every new document". Reduced Rate 5% reads 5%, Active, No. Zero Rated 0% reads 0%, a grey Inactive badge, No. The first row's Active toggle is on but greyed out; the other two are usable.
Three rates, one of them the default. Only the default is on a new invoice, which is what the last column is there to say.

Every accounting document you raise is priced with a tax rate: an invoice, an estimate, a sales receipt, a bill. This screen holds the rates available to your property, and marks one of them as the one a new document actually uses.

It sits beside the Taxes wizard, and the split between them is worth getting straight before anything else, because they sound like the same screen. The wizard records how you file: which agency, how often, on what basis. This screen records what you charge. A property can have its filing answers perfectly set up and still be pricing every invoice at the wrong percentage, and the two screens are where you would fix each of those.

The default is the whole answer

A property with three rates on this screen does not charge three rates. It charges one, and that one is the row carrying the blue Default chip. The Applied to new documents column exists to say so out loud, because a table of three plausible percentages otherwise gives you no way to tell which one an invoice will pick up.

To change which rate is the default, open the row menu on the rate you want and choose Make default. The chip moves, and the next document you raise is priced at the new rate. Nothing else on the screen changes, and nothing you have already raised changes either.

Adding a rate

The Add tax rate panel: a Name box showing the placeholder "Sales Tax 10%", a Rate box with a percent sign at its right and the hint "A percentage between 0 and 100.", and an Active switch turned on. Save is greyed out until both boxes are filled.
A rate is a name and a percentage. Nothing here makes it the default; that is a separate decision on the row menu.

A rate is a name and a percentage. Give it a name you will recognise in a list a year from now: the shipped one is called Sales Tax 10%, which puts the number in the name, and that is a habit worth keeping because the name is what appears when you are choosing between rates rather than reading this table.

The Active switch controls whether a rate is available to be used at all. An inactive rate stays on the list and keeps its history, but it cannot become the default. Deactivating is the softer alternative to deleting when a rate has stopped applying but you would rather not lose the record of it.

Adding a rate does not make it the default. That is deliberately a second, separate decision, so that adding next year's rate in advance cannot silently reprice everything you raise between now and next year.

The two things it will not let you do

The row menu open on Sales Tax 10%, the default rate. Edit is available; Make default and Delete are both greyed out.
On the default rate two of the three actions are closed off. It is already the default, and deleting it would leave every new document with no rate at all.

On the default rate, Make default and Delete are both greyed out, and its Active toggle is fixed on. The first is just tidiness; the other two are load bearing.

You cannot delete the default rate. Every new document reads it, so deleting it would leave the sales forms with no rate to price with. If you genuinely want a rate gone, make another rate the default first, and then delete it.

You cannot make an inactive rate the default. A rate the screen shows as switched off should not be the one quietly applied to every invoice you raise, and allowing it would put the table in the position of saying two contradictory things about the same row.

Both refusals happen on the way in rather than being warned about afterwards, so there is no state in which the property is briefly pricing documents at nothing.

Changing a rate does not restate your history

This is the part worth reading twice, because it is the question an accountant will ask first. Editing a rate, switching the default, or deleting a rate changes what your next document is priced at. It does not reach backwards. An invoice you raised last month keeps the tax it was raised with, on the invoice itself, on the customer's balance, and in every report that counts it.

That is the behaviour you want, and it is worth knowing in the other direction too. If you have been invoicing at the wrong percentage for a month, correcting the rate here fixes tomorrow and leaves the month alone. Those documents have to be put right one at a time, or credited and re-raised.

The other taxes screen

Prostay has a second screen that is also a list of taxes with percentages, at Integrations › Tax & Fees Settings. They are not the same thing and neither one feeds the other.

  • Tax rates, this screen, prices accounting documents: invoices, estimates, bills, sales receipts.
  • Tax and Fees prices reservations and sold items: the tax on a room night, a city tax per person per night, a resort fee.

A hotel will normally need both, and they will normally not hold the same numbers, because a room night and a consultancy invoice are not taxed the same way in most places. If you are trying to work out why a percentage you changed has not moved, the likeliest answer is that you changed it on the other screen.

Who can change a rate

This screen and the Taxes wizard share one permission, Tax filing configuration and tax rates, granted under Users › User Roles. It is one right rather than two because the two screens are two views of the same record: the agency that sets the percentage is the agency the return goes to.

Without it the screen opens on an explanation rather than the table, naming the permission you are missing. Viewing and editing are separate rights, so a role can be allowed to see what the property charges without being able to change it, which is the usual arrangement for anyone who reads the books but does not keep them.

Where to go next

The final step of the Taxes wizard, headed "You're ready to track tax" over the line "Next, set the rates your documents are priced with. Filing details live here; the percentage lives on Tax rates." Three buttons sit below: Edit Configuration, Set up tax rates and Done.
Where the two screens meet. The wizard records how you file; the button in the middle goes to what you charge.
  • Accounting settings, whose Taxes section covers the wizard this screen sits beside: the agency, the tax period, the filing frequency and the accrual or cash basis.
  • Raising a sales document, to see the rate arrive on an invoice and become part of a total.
  • Tax and Fees, if what you meant to change was the tax on a room night rather than on an invoice.

Common questions

  • I changed the rate and my old invoices still show the old one. Is that a bug?

    No, that is the intended behaviour and the only safe one. A document stores the tax it was raised with, so changing a rate here prices what you raise next and leaves your history exactly as it was. If an invoice was raised at the wrong percentage it has to be corrected or credited individually; nothing on this screen will restate it for you.

  • Why can I not delete the rate I want to delete?

    Because it is the default, which means it is the rate every new document is priced with. Deleting it would leave the sales forms with nothing to price against. Make another rate the default first, and Delete becomes available on the old one.

  • What is the difference between deactivating a rate and deleting it?

    Deactivating keeps the row on the screen and cannot be undone by accident; the rate simply stops being available and cannot be made the default. Deleting removes it. Neither touches documents already priced with the rate, so the practical difference is whether you want to keep the record of it in front of you.

  • I have two taxes screens. Which one sets the tax on a room night?

    Not this one. Room nights and sold items are priced by Integrations, Tax and Fees. This screen prices accounting documents: invoices, estimates, bills and sales receipts. The two are independent and a hotel usually needs both.

  • Can I have a different rate on a single invoice without changing the default?

    Not from this screen in this release. This is where the rates are defined and where the default is chosen; the default is what a new document picks up. If you need one document taxed differently the rate has to be the default at the moment you raise it, which is worth planning around rather than switching back and forth.

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