> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://support.invoicera.com/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# Different types of taxes on Invoicera

**What is Tax?** 

Tax is a fee charged (“or levied”) by a government on a product, service, or activity.

## Are there different types of taxes?

Yes, there are three types of taxes, that you can create with your Invoicera Account:

  
1. Normal Tax

  
2. Compound Tax

  
3. Group Tax (combining 2 or more tax types)

A **Normal tax** is percentage tax (also know as the primary tax sometimes) that is levied on a products OR services by the **government agency.**

A **Compound tax** is a special tax that is calculated over a **primary tax.** Some agencies also call this as the level 2 tax, that is levied over a **primary tax (Level 1 Tax)**.

A **Group  tax**, as the name suggests,  is a group of **Normal Taxes**, collected under a single name.


### ![](https://storage.crisp.chat/users/helpdesk/website/fbd301f55ae1b800/image_ivk4u1.png)