Managing Taxes

Let us have a look at the different modules in which the taxes can be added.

In this page…


Customers & Vendors

You can configure the tax treatment for your customers and vendors while adding or editing them in Zoho Books.

Tax Rate

Taxable
If your customer or vendor is taxable, choose a Tax Rate from the list of taxes that you have created, or add a new one.

Tax Exemption

Tax Exempt
If your customer or vendor is exempted from tax, choose this option, and select the Exemption Reason:

After making the necessary changes, click Save.


Items

Items are goods or services that you deal with in your business.

When you add an item in Zoho Books, you can choose whether it is Taxable or Non - Taxable. Here’s how:

Tax Rate for Item

Taxable
If your item is taxable, choose this option.

Tax Exemption for Item

Non - Taxable
If your item is not taxable, choose this option and select the Exemption Reason:

After making the necessary changes, click Save.


Transactions

Zoho Books has a wide range of sales and purchase transactions. You can create GST transaction for any of the following modules:

Sales Transactions

Purchase Transactions

Once you have set up the taxes, customers, vendors, and items in your Zoho Books account, you can start creating transactions and adding the tax rates in them.

Let us take the example of an invoice and see how the different taxes can be applied on it.

Tax Exemption for Item

With this, you have successfully added tax in your invoice.


Next >
BAS Report

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