---
title: LogiSense Tax Example
description: "## Summary This guide covers the process of configuring taxation using LogiSense native tax functionality. This guide will demonstrate how to add a single tax (HST), which will be applicable to all charges which are not usage based in Canada.…"
url: "https://learn.logisense.com/docs/701136907/"
updated: "2026-03-18"
category: Taxes / Taxes Example
tags:
  - "lsb-configuration-process"
---

# LogiSense Tax Example

## Summary

This guide covers the process of configuring taxation using LogiSense native tax functionality. This guide will demonstrate how to add a single tax (HST), which will be applicable to all charges which are not usage based in Canada.

## Prerequisites

- If you wish to apply taxes to specific Countries and States, then Countries will need to be configured. See the [Regional Setting Configuration Example](https://learn.logisense.com/docs/631308403/) article for a walkthrough on how to setup countries and states

## Configuration Steps

### Configure the Tax Vendor

1. Navigate to the **Setup** / **Finance** / **Taxes** / **Tax Vendor** screen
2. If the LogiSense tax vendor doesn’t exist by default, click the  button in the **Tax Vendor** panel and then add a LogiSense Tax Vendor
3. Click **Save** to setup the tax vendor

### Configure a Tax Rate

1. Navigate to the **Setup** / **Finance** / **Taxes** / **Tax Rates** screen
2. Click the  button in the **Tax Rates** panel to add a Tax Rate
3. Populate the tax rate details. In this example we will setup a tax with a 13% tax rate
4. Click **Save** to setup the tax rate

### Configure a Tax Code

1. Navigate to the **Setup** / **Finance** / **Taxes** / **Tax Codes** screen
2. Click the  button in the **Tax Codes** panel to add a Tax Code
3. Populate the tax code details. In this example we are specifying that the Tax Vendor is native (LogiSense) and that the tax is applicable to the Country of Canada. The tax is applicable to all services and types of accounts so the ‘Service Tax Category’ and ‘Account Tax Category’ are not populated
4. Under the **Tax Rates** tab select the HST tax rate that was setup previously and click then click **+Add**.
5. Click **Save** to setup the tax code

Accounts that are setup with a Service Contact that is located in Canada will charged a 13% tax on all non-usage based transactions (a fee, a monthly recurring charge, etc.).

### Tax on a Credit

**Account** / **Billing** / **Credits**

Adding a credit will apply the taxed amount immediately. As shown below a $100 charge applied $13.00 in tax and increased the credit value to $113.00 CAD.

### Tax on a Transaction

**Account** / **Billing** / **Transactions**

Adding a manual transaction will apply the taxed amount when the account is billed. No tax is applied to the transaction (One Time Charge) because billing (a bill run) has not billed the account since the transaction was added.

## Next Steps

- At this stage you have completed the base system configuration and can setup accounts. See the [New Account Creatio](https://logisense.atlassian.net/wiki/spaces/V10/pages/623640687)[n](https://learn.logisense.com/docs/623640687/)[Example](https://logisense.atlassian.net/wiki/spaces/V10/pages/623640687) for a sample account creation guide