Tax Groups

Flowtly Editorial Team2 min

The Tax Groups module in Flowtly allows organizations to define and manage the tax rules that apply to their invoicing and accounting processes. Tax groups serve as reusable configurations that can be assigned to invoice line items, products, and services to ensure consistent and accurate tax calculations.

Each tax group is a name plus a collection of tax rules, where each rule defines its own tax amount per country and, optionally, a zip-code range within that country. Organizations operating across multiple jurisdictions or dealing with different tax categories (such as standard VAT, reduced rates, or exempt transactions) can create separate tax groups — or separate rules within a group — for each scenario.

Tax groups integrate directly with the invoicing module, so that when an invoice is created or edited, the correct tax rate is applied automatically based on the assigned group. This reduces manual errors and ensures that invoices comply with applicable tax regulations from the moment they are generated.

For organizations using e-invoicing through KSeF, tax groups ensure that the correct tax codes are included in the structured XML data submitted to the national system. Proper tax group configuration is essential for passing validation checks and maintaining compliance with electronic invoicing requirements.

Example use cases

  • Configure standard and reduced VAT rate groups for domestic invoicing.
  • Create a tax-exempt group for transactions with international clients outside the EU.
  • Assign tax groups to product categories so that invoice line items inherit the correct rate automatically.
  • Update tax group rates when regulatory changes take effect, ensuring all future invoices reflect the new rates.
  • Review tax group assignments across invoices to prepare for periodic tax filings.

Connection map

Refers toUses upPart ofDerived from
Documented hereDocumented elsewhere
invoice billed to counterparty. invoice taxed by tax-group. cost spends against budget. cost owed to counterparty. bank-transaction reconciled to invoice. contract schedules payment-schedule-line. contract agreed with counterparty. contract attached to budget. budget covers project. invoice billed from project. project linked to budget. lead becomes counterparty. deal sold to counterparty.billed totaxed byspends againstowed toreconciled toschedulesagreed withattached tocoversbilled fromlinked tobecomessold toIInvoice — A sales document issued to a client: line items, dates, tax. It is created, reviewed, previewed and then sent.InvoiceCCounterparty — The other side of a financial document — a client billed, or a supplier owed.CounterpartyTTax group — The tax treatment applied to a line, so rates are set once rather than per document.Tax groupCCost — Money the organisation owes or has spent, tracked against a budget.CostBBudget — The financial envelope an engagement is measured against — what was planned, versus what has actually been spent.BudgetBBank transaction — A movement on a connected bank account. Matching it to an invoice or a cost is what makes the books agree with the bank.Bank transactionCContract — The financial terms of an engagement: a structured set of payment schedule lines, in one direction or the other.ContractPPayment schedule line — One dated amount on a contract, in a direction — money owed to a supplier, or due from a client.Payment schedule linePProject — The core organizational unit for a business initiative, client engagement or internal work. Everything tracked — time, cost, invoicing, profitability — hangs off one.ProjectPProspect — A company you are working but that is not a customer yet. It sits at New, Contacted or Qualified, and everything done to it is logged against it.ProspectDDeal — A sale in progress: a customer, an amount, and the stage it has reached. It cannot exist without a customer, and its stage is never blank.Deal

Related terms