diff --git a/app/Models/Product.php b/app/Models/Product.php
index 29174daaf4..60b8c0d821 100644
--- a/app/Models/Product.php
+++ b/app/Models/Product.php
@@ -105,6 +105,12 @@ class Product extends BaseModel
     use SoftDeletes;
     use Filterable;
 
+    public const PRODUCT_TAX_EXEMPT = 0;
+    public const PRODUCT_TYPE_PHYSICAL = 1;
+    public const PRODUCT_TYPE_SERVICE = 2;
+    public const PRODUCT_TYPE_DIGITAL = 3;
+    public const PRODUCT_TYPE_FREIGHT = 4;
+
     protected $fillable = [
         'custom_value1',
         'custom_value2',
diff --git a/database/migrations/2023_03_21_053933_tax_calculations_for_invoices.php b/database/migrations/2023_03_21_053933_tax_calculations_for_invoices.php
new file mode 100644
index 0000000000..e70b119609
--- /dev/null
+++ b/database/migrations/2023_03_21_053933_tax_calculations_for_invoices.php
@@ -0,0 +1,40 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     *
+     * @return void
+     */
+    public function up()
+    {
+        Schema::table('invoices', function (Blueprint $table) {
+            $table->mediumText('tax_data')->nullable(); //json object
+        });
+
+        Schema::table('companies', function (Blueprint $table) {
+            $table->boolean('calculate_taxes')->default(false); //setting to turn on/off tax calculations
+            $table->boolean('tax_all_products')->default(false); //globally tax all products if none defined
+        });
+
+        Schema::table('products', function (Blueprint $table){
+            $table->unsignedInteger('tax_id')->nullable(); // the product tax constant
+        });
+
+    }
+
+    /**
+     * Reverse the migrations.
+     *
+     * @return void
+     */
+    public function down()
+    {
+        //
+    }
+};
diff --git a/lang/en/texts.php b/lang/en/texts.php
index 054f2c91fe..e017dbfecb 100644
--- a/lang/en/texts.php
+++ b/lang/en/texts.php
@@ -5027,6 +5027,11 @@ $LANG = array(
     'notification_payment_emailed' => 'Payment :payment was emailed to :client',
     'notification_payment_emailed_subject' => 'Payment :payment was emailed',
     'record_not_found' => 'Record not found',
+    'product_tax_exempt' => 'Product Tax Exempt',
+    'product_type_physical' => 'Physical Goods',
+    'product_type_digital' => 'Digital Goods',
+    'product_type_service' => 'Services',
+    'product_type_freight' => 'Shipping',
 );