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Procore

How can I use tax codes on a project?

Answer

In Procore, you create tax codes and apply them to line items using the Change Orders, Commitments, and Prime Contract 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 on a contract, change order, and invoice is calculated by referencing the tax code applied to each line item. The total tax amount is a sum of tax applicable for all line items on the financial document, including markup.

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

  • Required User Permissions:
    • To setup this feature on your company's Procore account, 'Admin' permission on the Company Admin tool.
    • To setup this feature on a project, 'Admin' permission on the Project Admin tool.
  • Additional Information:
    • 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) or Value-Added Tax (VAT) 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.

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.
  2. Enable tax codes on the Procore project's Admin tool by placing a checkmark in the Use Tax Codes box. See Update General Project Information.
  3. When updating Schedule of Values (SOV) on a change order, commitment, or the prime contract, select the tax code from the list of choice on the line item. For details, see:
  4. Export the change order to the PDF file format: