Taxes

You can configure tax related preferences from the Tax Settings page. In this help document, you’ll learn about the tax preferences available in Zoho Procurement.

Enable Tax Settings

To enable the VAT settings for your organisation in Zoho Procurement:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Settings.
Check the Is your business registered for VAT? option.
Enter your Tax Registration Number.
If your business involves international trade (importing outside GCC), check the Enable trade with contacts outside Bahrain option.
Select the VAT Registered On date.
Click Save.

After you set up your tax information, the following tax rates that will be available when creating transactions:

Standard Rate [10%]: VAT of 10% can be applied on transactions created in Zoho Procurement. Most of the transactions that occur in Bahrain fall under this tax rate.
Zero Rate [0%]: VAT of 0% can be applied on transactions created in Zoho Procurement.
Exempt: If any of the items are exempted from VAT, you can select them as exempted from VAT while creating transactions. You don’t need to create a new tax for such transactions.
Out of Scope: If the supply of any of your items does not fall under the scope of VAT, then you can select this option while creating transactions for them.

Add Tax Rates

After enabling Taxes, the default tax rates, Zero rate (0%) and Standard Rate (10%), will be available. You can also create additional tax rates as per your business requirements. Here’s how:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Click + New Tax on the top right corner of the page.
Fill in the Tax Name and Rate (%) on the New Tax page.
Click Save.

View Records Associated With Tax Rates

To view records associated with a tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Hover over the tax rate whose associated records you wish to view, and click the Dropdown icon.
Click View Associated Records. You can now view all the records associated with the selected tax rate.

Edit Tax Rates

To edit the tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Hover over the tax rate you wish to edit and click the Dropdown icon.
Click Edit.
Make the desired changes in the pop-up that appears.
Click Save.

Delete Tax Rates

To delete an existing tax rate:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Hover over the tax rate you wish to delete and click the Dropdown icon.
Click Delete.
Confirm the action by clicking OK in the screen that follows to delete a tax rate.

Mark Tax Rates as Inactive

Note: System generated tax rates cannot be marked as inactive.

To mark a tax rate as inactive:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Hover over the tax rate you wish to mark as inactive and click the Dropdown icon.
Click Mark as Inactive. The selected tax rate will now be inactive.

Mark Tax Rates as Active

To mark a tax as active:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Click the Active Taxes dropdown and select Inactive.
Hover over the tax rate you wish to mark as active and click the Dropdown icon.
Click Mark as Active.

Mark Tax Rate as Default

Note: Default tax rate will be used for transactions involving vendors whose Tax Preference is not configured.

To mark a tax rate as default:

Go to Settings in the top right corner of the page.
Click Taxes under Taxes & Compliance.
In the Taxes pane, click Tax Rates.
Hover over the tax rate you wish to mark as default and click the Dropdown icon.
Click Mark as Default.

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