## Zoho Invoice — Product, features, payments, integrations, solutions, and help Index

Access the complete documentation index at:
https://www.zoho.com/au/invoice/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Australia GST

Create a new organization in Zoho Invoice and choose Australia as the country.

**General Information:** **GST:** Goods and Services Tax is a value added tax of 10% that is applied on the sale of goods and services in Australia.

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## Creating an Australian Organization

*   If you are signing up as a new user, select **Australia** while choosing the **Country** from the drop-down.

![Aus New User](/invoice/help/images/australia-tax/aus-new-user.png)

*   If you already use Zoho Invoice, create a new organization and select the **Country** as **Australia**.

![Aus Existing User](/invoice/help/images/australia-tax/aus-existing-user.png)

**Insight:** You can also set your taxes in the Quick Setup that follows. You will learn how to setup taxes that will be applicable for your business in Step 2.

## Tax

### Create a New Tax

*   Click on ![](/invoice/help/images/gear-icon.png) and select **Taxes**.
*   Select the checkbox next to **“Is your business registered for GST?”**. Fill up the information the fields that are displayed including **Australian Business Number, Reporting Period, Generate First Tax Return From** and **Tax Basis**.
*   Finally click on **Save**.
*   In the screen that follows, click on **+New Tax**, placed on the top-right corner of the taxes window.

![New Australia Tax](/invoice/help/images/australia-tax/aus-tax-newtax.png)

*   In the new window that appears, enter the **Tax Name** and **Rate(%)**.

Click on **Save** to save the tax.

### Create a New Tax Group

*   Click on ![](/invoice/help/images/gear-icon.png) and select **Taxes**.
*   Click on **\+ New Tax Group** option under new tax drop down, placed on top-right corner of the taxes window.
*   Before you add a tax group, you need to have taxes already added.
*   Enter the name of the tax group and select the taxes that needs to be added.

![New Australia Tax Group](/invoice/help/images/australia-tax/aus-tax-newtaxgroup.png)

Click on **Save** to save the tax group.

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### Default Tax

The Default Tax will be used in transactions when tax preference (Taxable/Tax Exempt) is not set for the involved customers. The first tax you create will be marked as the Default Tax initially. However, you can mark a different sales tax as default as well.

Default Tax can be useful for the following scenarios.

*   When customers are imported into Zoho Invoice, their tax preference is not set. When these customers are involved in transactions, the Default Tax will be applied in those transactions.
*   The tax preference will also not be set for customers who were created before tax was enabled. Here again, the Default Tax will be used in transactions where these customers are involved.

**Insight:** Default Tax is not automatically associated with a customer. It is only used when tax preference (Taxable/Tax Exempt) is not set for the involved customers.

To mark a different tax as default, hover your mouse over the tax you wish to select as default. You will find the **mark as default** button appearing next to the tax. Select it to make the tax a default tax.

![Change default tax](/invoice/help/images/australia-tax/aus-tax-default-tax.png)

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## Tax Information in Contacts & Items

### Contacts

**Associate a tax for a contact**

You can associate taxes to contacts either while creating or editing them.

*   Go to **Contacts** module and select **\+ New** to create a contact.
*   After filling the customer details, under the **Tax & Payment Details** section, select **Taxable** for Tax Preference.
*   For the **Tax Rate**, select the appropriate tax from the drop-down which has already been created. You can also create a new tax by selecting **\+ New Tax** in the drop-down.
*   Click on **Save**.

![Associate Tax for Contact](/invoice/help/images/australia-tax/aus-tax-taxable.png)

**Making a Contact Non-Taxable**

*   Select **Tax Exempt** under **Tax Preference**.
*   Select the **Exemption Reason** from the drop-down.
*   Click on **Save**.

![Contact Non-Taxable](/invoice/help/images/australia-tax/aus-tax-taxexempt.png)

**Insight:**

*   **GST FREE:** The price of the product or service you sell to a contact will not include GST.
*   **GST FREE EXPORT:** The price of the product will not include the GST if you intend to export and sell your items outside Australia.

Click [here](https://goo.gl/CtXBnZ) to learn more about it.

### Items

*   While creating an item, you can choose to make it taxable or non-taxable.
*   After entering the relevant details, select the **Taxable** check box and save it. This will make the item taxable.

![Items Taxable](/invoice/help/images/australia-tax/aus-tax-new-item.png)

*   If you wish to make the item non-taxable, select the **Non-Taxable** option. You will be prompted to select an **Exemption Reason**, which you can select from the drop down.

![Items Tax-Exempt](/invoice/help/images/australia-tax/aus-tax-item-nontaxable.png)

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## Invoices

### Tax Information in Invoices

*   While creating an invoice, the tax information can be seen just below the **Customer Name** field.
*   Here, you can change the tax preference for the particular invoice i.e: you can also make the invoice non-taxable by selecting the **Tax Exempt** option. Selecting the **Make it permanent?** option, the tax preferences for the contact will get updated.

![Tax Information in Invoice](/invoice/help/images/australia-tax/aus-tax-invoice-information.png)

**Insight:** **INPUT TAXED SALES:** The price of goods and services do not include GST. Click [here](https://goo.gl/Tts6YA) to learn more about it.

### Making an Item Non-Taxable

*   If you are adding an item under item details while creating an invoice, and if you wish to make it non-taxable, select **Non-Taxable** option from the **Tax** drop down.
*   In the next window that appears, choose the **Exemption Reason**.
*   Click **Update**.

![Non-Taxable Item in Invoice](/invoice/help/images/australia-tax/aus-tax-item-reason.png)

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## Showing Tax Registration Number in Sales Transactions

*   Click on ![](/invoice/help/images/gear-icon.png) and navigate to **More Settings -> Preferences -> General**.
*   Scroll down to the **Organization Address Format** section.
*   In the **Insert Placeholder** drop down, you will find **ABN** which stands for ‘Australian Business Number’.
*   Insert the placeholder in the address format.

![Show Tax Registration Number](/invoice/help/images/australia-tax/aus-tax-placeholder.png) ![Tax Registration Number on Invoice](/invoice/help/images/australia-tax/aus-tax-placeholder1.png)

*   Click on **Save**.
*   Now create a sales transaction, and you can find the Tax Registration No. with the organization address.

![Tax Registration Number](/invoice/help/images/australia-tax/aus-tax-placeholder2.png)

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## Taxes in Purchases

You can also choose to make purchase transactions such as Expenses as Taxable or Non Taxable. While creating such transactions, select a tax from the drop-down to make the transaction taxable or select **Non-Taxable** to make the transaction exempt from tax.

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## Terminologies

**Name**

**Description**

**Tax Name**

It refers to the name you’d like to assign to a particular tax. Ex: GST in Australia is 10%.

**Rate**

Refers to the tax rate pertaining to a province in percentage. Ex: GST in Australia is 10%

**Exemption Reason**

Users have to select why a customer / transaction / item is exempt from sales tax. Ex: GST FREE, GST FREE EXPORT and INPUT TAXED SALES.