If you are in a region/country that has to account for two types of taxes (Provincial and Government taxes for example), refer to the steps below:

1. From the More Options Menu, click on Business Defaults and then click on the Taxes tab.
2. Click on the Edit button in the upper-right corner.
3. Click on the Category you want to edit or the Add Category button.
   Note: If you choose to add a new category, type in the name of your category. For example: "PST+GST"
4. Click on the Details button.
5. Enter the name and Rate for each Sub-Category.
6. Select Cumulative if the sub-categories for your region/country are calculated on a cumulative basis.

• If a tax is 10%, and is comprised of a 6% and 4% tax, this is a perfect example of when to use sub-categories. This is not cumulative.
• If a tax is 10.24%, and is comprised of a 6% tax and 4% tax, this is also an example of a time when sub-categories should be used; however, this is an example of cumulative tax (i.e., the 6% tax is applied first, then the 4% tax is applied cumulatively on top of it, resulting in 10.24% total tax).