diff --git a/app/Http/Controllers/ExpenseController.php b/app/Http/Controllers/ExpenseController.php
index d41b68c01aaf..425b5d4b8c0f 100644
--- a/app/Http/Controllers/ExpenseController.php
+++ b/app/Http/Controllers/ExpenseController.php
@@ -12,6 +12,7 @@ use App\Models\Vendor;
 use App\Models\Expense;
 use App\Models\ExpenseCategory;
 use App\Models\Client;
+use App\Models\TaxRate;
 use App\Services\ExpenseService;
 use App\Ninja\Repositories\ExpenseRepository;
 use App\Http\Requests\ExpenseRequest;
@@ -237,6 +238,7 @@ class ExpenseController extends BaseController
             'customLabel1' => Auth::user()->account->custom_vendor_label1,
             'customLabel2' => Auth::user()->account->custom_vendor_label2,
             'categories' => ExpenseCategory::whereAccountId(Auth::user()->account_id)->orderBy('name')->get(),
+            'taxRates' => TaxRate::scope()->orderBy('name')->get(),
         ];
     }
 
diff --git a/app/Models/Expense.php b/app/Models/Expense.php
index 3b737ca92c60..d5ad0e040594 100644
--- a/app/Models/Expense.php
+++ b/app/Models/Expense.php
@@ -40,6 +40,10 @@ class Expense extends EntityModel
         'bank_id',
         'transaction_id',
         'expense_category_id',
+        'tax_rate1',
+        'tax_name1',
+        'tax_rate2',
+        'tax_name2',
     ];
 
     /**
diff --git a/app/Models/TaxRate.php b/app/Models/TaxRate.php
index a69b6a563761..f041c735d989 100644
--- a/app/Models/TaxRate.php
+++ b/app/Models/TaxRate.php
@@ -36,4 +36,13 @@ class TaxRate extends EntityModel
     {
         return $this->belongsTo('App\Models\User')->withTrashed();
     }
+
+    /**
+     * @return bool|string
+     */
+    public function __toString()
+    {
+        return sprintf('%s: %s%%', $this->name, $this->rate);
+    }
+
 }
diff --git a/resources/lang/en/texts.php b/resources/lang/en/texts.php
index 43c4413ef630..0e6d051fd192 100644
--- a/resources/lang/en/texts.php
+++ b/resources/lang/en/texts.php
@@ -2022,6 +2022,8 @@ $LANG = array(
     'archived_expense_categories' => 'Successfully archived :count expense category',
     'restore_expense_category' => 'Restore expense category',
     'restored_expense_category' => 'Successfully restored expense category',
+    'apply_taxes' => 'Apply taxes',
+
 
 );
 
diff --git a/resources/views/expenses/edit.blade.php b/resources/views/expenses/edit.blade.php
index c0d36eab7f50..a15c0c349c06 100644
--- a/resources/views/expenses/edit.blade.php
+++ b/resources/views/expenses/edit.blade.php
@@ -81,9 +81,10 @@
                                 ->data_bind('checked: convert_currency')
                                 ->label(' ') !!}
                     @endif
-                    <br/>
+
 
                     <div style="display:none" data-bind="visible: enableExchangeRate">
+                        <br/>
                         <span style="display:none" data-bind="visible: !client_id()">
                             {!! Former::select('invoice_currency_id')->addOption('','')
                                     ->label(trans('texts.invoice_currency'))
@@ -106,6 +107,41 @@
                                 ->data_bind("value: convertedAmount, enable: enableExchangeRate")
                                 ->append('<span data-bind="html: invoiceCurrencyCode"></span>') !!}
                     </div>
+
+
+                    @if (!$expense || ($expense && (!$expense->tax_name1 && !$expense->tax_name2)))
+                        {!! Former::checkbox('apply_taxes')
+                                ->text(trans('texts.apply_taxes'))
+                                ->data_bind('checked: apply_taxes')
+                                ->label(' ') !!}
+                    @endif
+
+                    <div style="display:none" data-bind="visible: apply_taxes">
+                        <br/>
+                        {!! Former::select('tax_select1')
+                            ->addOption('','')
+                            ->label(trans('texts.tax_rate'))
+                            ->onchange('taxSelectChange(event)')
+            				->fromQuery($taxRates) !!}
+
+                        <div style="display:none">
+                            {!! Former::input('tax_rate1') !!}
+                            {!! Former::input('tax_name1') !!}
+                        </div>
+
+                        <div style="display:{{ $account->enable_second_tax_rate ? 'block' : 'none' }}">
+                            {!! Former::select('tax_select2')
+                                ->addOption('','')
+                                ->label(trans('texts.tax_rate'))
+                                ->onchange('taxSelectChange(event)')
+                				->fromQuery($taxRates) !!}
+
+                            <div style="display:none">
+                                {!! Former::input('tax_rate2') !!}
+                                {!! Former::input('tax_name2') !!}
+                            </div>
+                        </div>
+                    </div>
 	            </div>
                 <div class="col-md-6">
 
@@ -158,6 +194,7 @@
         var vendors = {!! $vendors !!};
         var clients = {!! $clients !!};
         var categories = {!! $categories !!};
+        var taxRates = {!! $taxRates !!};
 
         var clientMap = {};
         for (var i=0; i<clients.length; i++) {
@@ -224,6 +261,9 @@
                 onClientChange();
             });
 
+            setTaxSelect(1);
+            setTaxSelect(2);
+
             @if ($data)
                 // this means we failed so we'll reload the previous state
                 window.model = new ViewModel({!! $data !!});
@@ -308,6 +348,7 @@
             self.exchange_rate = ko.observable(1);
             self.should_be_invoiced = ko.observable();
             self.convert_currency = ko.observable(false);
+            self.apply_taxes = ko.observable({{ ($expense && ($expense->tax_name1 || $expense->tax_name2)) ? 'true' : 'false' }});
 
             self.mapping = {
                 'documents': {
@@ -436,6 +477,39 @@
             window.countUploadingDocuments--;
         }
 
+        function taxSelectChange(event) {
+            var $select = $(event.target);
+            var tax = $select.find('option:selected').text();
+
+            var index = tax.lastIndexOf(': ');
+            var taxName =  tax.substring(0, index);
+            var taxRate = tax.substring(index + 2, tax.length - 1);
+
+            var selectName = $select.attr('name');
+            var instance = selectName.substring(selectName.length - 1);
+
+            $('#tax_name' + instance).val(taxName);
+            $('#tax_rate' + instance).val(taxRate);
+        }
+
+        function setTaxSelect(instance) {
+            var $select = $('#tax_select' + instance);
+            var taxName = $('#tax_name' + instance).val();
+            var taxRate = $('#tax_rate' + instance).val();
+            if (!taxRate || !taxName) {
+                return;
+            }
+            var tax = _.findWhere(taxRates, {name:taxName, rate:taxRate});
+            if (tax) {
+                $select.val(tax.public_id);
+            } else {
+                var option = new Option(taxName + ': ' + taxRate + '%', '');
+                option.selected = true;
+                $select.append(option);
+            }
+        }
+
+
     </script>
 
 @stop
diff --git a/resources/views/invoices/edit.blade.php b/resources/views/invoices/edit.blade.php
index e5f78562e7ad..7314d0b3f7df 100644
--- a/resources/views/invoices/edit.blade.php
+++ b/resources/views/invoices/edit.blade.php
@@ -867,6 +867,10 @@
                     item.qty(1);
                     item.expense_public_id(expense.public_id());
 					item.cost(expense.converted_amount());
+                    item.tax_rate1(expense.tax_rate1());
+                    item.tax_name1(expense.tax_name1());
+                    item.tax_rate2(expense.tax_rate2());
+                    item.tax_name2(expense.tax_name2());
                 }
                 model.invoice().invoice_items.push(blank);
                 model.invoice().has_expenses(true);