## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/bh/books/help/llms.txt

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

# Items

When you add an item in Zoho Books, you can configure the appropriate tax applicable on it. This tax will be auto-populated whenever you create transactions for this item. To configure the tax rate of items:

*   Go to the **Items** module from the left sidebar and click **Items**.
*   Click **\+ New** on the top right corner.
*   Select the **Tax** applicable on the item.

![Item VAT Settings](/bh/books/help/images/vat/item-taxes.png)

VAT treatments such as **Exempt** and **Out of Scope** can be selected while creating transactions.

Learn more about the different [VAT rates that can be applied to items](https://www.zoho.com/bh/books/vat/ebook/#vat-rates).

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**Next:**  
**[VAT in Transactions >](/bh/books/help/vat-bh/vat-in-transactions.html)**