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How can I use tax codes on a project?

You can add tax code fields on the Prime Contract, Commitments, and Change Orders tools.

Background

Some construction companies may want to identify taxed amounts for schedule of value line items on prime contracts, commitments, and change orders. In Procore, you can set up a tax code, which is a percentage of the amount on a schedule of values line item. Tax code fields appear in the schedule of values for prime contracts, commitments, and change orders. They also appear on the PDF forms that are generated for prime contracts, commitments, and change orders. You can also see the total tax amount on these PDF forms, broken out from the grand total. You can set up multiple tax codes that can be used for different tax rates per tax code.

Invoice PDFs also reflect the tax. The Summary page of the PDF will add:

  • Tax applicable to this payment
  • Current payment due including tax

Things to Consider

  • 'Admin' permissions on the company-level Admin tool are required to set up this feature at the company level.
  • 'Admin' permissions on the project-level Admin tool are required to enable this feature at the project level.
  • The tax amount and rate will not appear on the contract or change order SOV within Procore (only on the PDF).
  • The Grand Total amount on the contract or change order SOV within Procore will exclude the tax.
  • If you want to display Goods & Services Tax (GST) as a budget line item and to make it visible in a custom PDF, but not add tax fields throughout Procore, see "Add Tax to a Budget" in the See Also section below.

Tax Code Workflow

  1. Enable the tax codes feature at the company level and set up the tax type and tax codes. See "Configure Tax Code Settings" in the See Also section below.
  2. Enable tax codes at the project level:
    • Mark the Use Tax Codes check box on the project-level Admin tool, located in the "Advanced Project Settings" section. See "Add or Edit General Project Information" in the See Also section below.
  3. When creating a prime contract, commitment, or change order and adding/editing each schedule of values line item, select the Tax Code from the list of available choices. See "Create a Prime Contract" and "Create a Commitment" in the See Also section below.

  4. Export the prime contract, commitment, or change order as a PDF file. Tax Code fields appear on the PDF form along with a subtotal without tax, a Total Tax field which lists a subtotal of all the amounts in the Tax Code column, and a grand total that includes tax.

  • See "Export a Prime Contract to PDF" in the See Also section below.

  • See "Export a Commitment to PDF or DOCX" in the See Also section below.

  • See "Create a PDF of a Change Order" in the See Also section below.

Note: Invoice PDFs also reflect the tax. The Summary page of the PDF will add:

  • Tax applicable to this payment
  • Current payment due including tax