VAT

VAT registered organisations can apply tax rates to their expenses in Zoho Expense. This section will give you a detailed overview about VAT in Zoho Expense.

Enabling VAT

Before you can start using VAT features, you must first enable it in Zoho Expense. As soon as you enable it, you will be able to apply the tax type and the tax rate to your expenses. You can also gain insights into your taxable expenses by generating tax summaries.

To enable VAT for your organization in Zoho Expense,

  1. Navigate to the Admin module in the left sidebar.
  2. Select Settings.
  3. Click Taxes under the List section.
  4. Check My business is registered for VAT.
  5. Enter the Tax Registration Number or Provisional TRN.
  6. Check Enable trade with contacts outside UAE if you incur expenses in the GCC countries other than the UAE.

Enabling VAT

Note: You can only add a new tax if you check Enable trade with contacts outside UAE.

Tax Types

After you enable VAT, you will be able to choose a Tax Type while creating your expenses.

The types of taxes are:

Tax Type Description
Domestic Expense Expenses that are incurred within UAE.
Within GCC Expenses that are incurred in GCC countries.
Outside the scope of VAT Expenses that do not belong to the above tax types.

VAT Types

Note: Mileage and Per Diem expenses will be considered as outside the scope of VAT by default.

Adding a New Tax

You can use the default Standard Rate and Zero Rate provided by Zoho Expense for the expenses incurred within UAE. When you incur an expense from other GCC countries, you have to abide by their tax rates. So, you can create a new tax rate.

  1. Navigate to the Admin module in the left sidebar.
  2. Select Settings.
  3. Click Taxes under the List section.
  4. Click + New Tax on the top right corner.
  5. Enter the Tax name.
  6. Enter the Tax Rate.
  7. Choose the GCC member state.
  8. Click Save.

Adding a new tax

Note: Newly created taxes can be associated only with expenses incurred in GCC countries other than the UAE.

Editing a Tax Rate

If you incur an expense from another country who have recently updated their tax laws, you would have to edit the existing tax rates in Zoho Expense. To edit a tax rate:

  1. Navigate to the Admin module in the left sidebar of Zoho Expense.
  2. Select Settings.
  3. Click Taxes under the List section.
  4. Select the tax rate you wish to edit.
  5. Enter the new tax rate under Rate.
  6. Click Save.

Editing a new tax

Note: The updated tax rate will reflect in the all transactions, where the tax has been applied, in the Zoho Finance Suite.

Deleting a Tax

If you’ve created a tax and later find it unnecessary, you can delete it. To delete a tax:

  1. Navigate to the Admin module in the left sidebar of Zoho Expense.
  2. Select Settings.
  3. Click Taxes under the List section.
  4. Hover over the tax you wish to delete.
  5. Click Delete.
  6. Click Confirm.

Note: You cannot delete the Standard Rate and the Zero Rate tax. Similarly, you will not be able to delete the taxes that you have created unless you delete all the expenses that have been associated with the created taxes.

Disabling VAT

You will not be able to disable VAT unless you delete all the existing VAT related expenses.

  1. Navigate to the Admin module in the left sidebar.
  2. Select Settings.
  3. Click Taxes under the List section.
  4. Click Tax Return Settings on the top right corner.
  5. Uncheck My business is registered for VAT.
  6. Click Save.

Now, the VAT features will be disabled in Zoho Expense.

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