On Cloud, labor tax rates and product tax rates are configured under “Settings > Catalog > Taxes”. You can add multiple product and labor tax rates.
Check out this article for more details.
Default labor tax
Cloud will apply the labor tax rate specified in the service contract for labor provided during a service call.
Default product tax
Cloud will apply the product tax rate you selected under “Settings > Catalog > Taxes” for replacement products and new products or accessories installed during a service call.
Changing tax rates
To modify the labor tax or product tax for a service call, click the "Settings" icon in the service call Details view and click “Tax Settings.” This will open a modal to change the tax rates.
You can change the labor and product taxes, and even the tax method to “Set on each item individually”.
To apply tax rates on an individual basis, navigate to the work summary of the call and follow these steps:
Click the 3-dot menu of a replacement product or accessory and apply the applicable tax rate from the sidebar.
Click the labor time and apply the tax rate in the modal to add labor.