How to Set Your GST Rate
In your Houzz Pro settings, you can create and save tax rates to be used as needed in your projects. Since we typically only use one tax rate in Australia and New Zealand – GST – you will only need to set this up as a tax rate once to be able to apply it to all of your projects.
To start:
- Select the Settings icon near the bottom of your left navigation, then click on Business Documents in the menu.
- Under Business Document Setup at the top of the page, select Accounting.Â
- Click Add GST to add a new GST rate.
- Give the GST a name, enter the % rate, and add a description if needed. This setting is primarily for other countries that have multiple tax rates, so you can ignore any other settings.
- Once you save your GST rate, you’ll be able to start using it in your estimates or proposals.
Set Default GST Rate
If you only have one GST rate entered, this will be the default rate. If you have more than one GST rate in your Houzz Pro account, you can choose which one you want to set as the default GST rate for all projects. To do so, click the three dots to the right of the desired rate and select Set as Default from the menu.
Inclusive/Exclusive of GST Setting
To give you flexibility on how you run your business, you have the option to adjust your GST settings to be inclusive or exclusive of GST by default on sales and expenses. What does that mean?
- Inclusive of GST means the GST has already been calculated and is included in the advertised sales price.
- Exclusive of GST means the GST is not included in the advertised sales price. Any applicable GST would need to be added as needed.
To set the default GST settings for sales and expenses, navigate to the Accounting tab on the Business Document Setup page, located in your Settings section. Under the GST Settings header, select Inclusive of GST or Exclusive of GST. Changes will be automatically saved and applied to future documents.
You can also adjust this option on each document – just click on Settings icon within the document and choose the appropriate option next to GST settings.
Note: This option will only appear when the document is empty and doesn't contain any items.
How does that impact financial documents?
If your default setting is Inclusive of GST, you will see this denoted throughout your financial documents as (Incl. GST), specifically in the Cost and Total columns, and Subtotal at the bottom of the item list. This lets your clients know that GST is already calculated into the item totals they see. They will see a breakdown of the included GST at the bottom, if you choose to show them this detail in the client view settings.
If your default setting is Exclusive of GST, the item Cost and Total columns, and Subtotal at the bottom of the item list, will show the client's cost, excluding GST. Any applicable GST is calculated and shown in the breakdown at the bottom, then added in the overall Total. Your client will see a breakdown of the subtotal and GST at the bottom, if you choose to show them this detail in the client view settings.
Set Default GST Rate Per Project
You can also set the default GST rate on a project basis, allowing you to use a GST rate other than the company default for all documents in a specified project. To do so, click the Project Details icon on a project overview page, then choose the Project Settings tab at the top. Here you can use the dropdown to select from your existing rates, or create a new one. Make sure to click Save Changes at the bottom when you're done.
This GST rate will be the default for all new documents in that project, including those created from templates. You can click Clear GST Rate to revert project documents back to the company default rate.
Set GST Rate for Estimates
Each line item on your estimate has a GST column — if you don't see it, you will need to enable it in the Customise Settings at the top of your line items section. You can adjust the GST column as needed per item, depending on the item type. Material, Labour, Product, and Service types can be marked GST applicable or GST Not Applicable. Items with the Material & Labour type GST can be applied on Material, Labour, both or neither.
To make changes, click the arrow in the GST column for the desired line item and a dropdown will appear. Choose the type of GST that applies to the item.
Once you’ve set the GST correctly for your line items, scroll to the bottom of the estimate where you’ll be able to see GST applied to the total.
Set GST Rate for Proposals
Each line item on your proposal has a GST column— if you don't see it, you will need to enable it in the Customise Settings at the top of your line items section. You can adjust the GST column as needed per item, allowing you apply GST to the Item, Shipping, both or neither.Â
To make changes, click the arrow in the GST column for the desired line item and a dropdown will appear. Choose the type of GST that applies to the item. If neither Item nor Shipping are selected, it will default to GST Not Applicable. If both are selected, it will default to GST Applicable.
Once you’ve set the GST correctly for your line items, scroll to the bottom of the proposal where you’ll see the GST applied to this proposal.