Taxes

Your business’ financials are affected by regulatory taxes and each organization has different country specific taxes to adhere to. You may have added Taxes in the Quick Setup section. You can edit or add further Taxes through the Settings section.

In this page…


Tax Tracking

The taxes that are applied under your sales and purchase transactions can be tracked under:

Track Taxes Under A Single Account

The taxes applied on your sales and purchase transactions will be tracked under a single account. By default, these taxes will be tracked under the Tax Payable account.

Taxes
Track Taxes Under Separate Accounts

If you would like to track the taxes applied to your sales and purchase transactions under different accounts, you can do so. The taxes applied on the sales and purchase transactions will be tracked under the Output Tax and the Input Tax accounts respectively.

Insight: The setting will be applicable for other Zoho Finance applications as well. 

To start tracking taxes under separate accounts:

Taxes

Adding New Taxes

To create or add a new Tax, follow steps as below:

Taxes

What is a Compound Tax?
In some countries you might have to collect more than one tax from your customers. It is for you to pay to your local province and another to the federal authority.
In certain cases, the provincial tax is applied on the total that includes the item or invoice amount as well as the federal tax amount. Such taxes are called as Compound Taxes.

If you had chosen to track taxes under seperate accounts, you can choose to track taxes under a single account while creating a new tax.

Taxes Taxes

Editing Taxes

To edit an existing Tax follow steps as below:

Taxes Taxes

If you had chosen to track taxes under seperate accounts, you can choose to track taxes under a single account while editing the tax.

Taxes Taxes

Note: Changing the tax tracking preference will not affect the previous transactions.


Deleting Taxes

To delete an existing tax follow steps as below:

Taxes

Adding a New Tax Group

It is customary in some countries to club some taxes under a common head. In such cases you will have to create Tax Group which will fulfill this regulatory requirement. To create a Tax Group follow steps as below:

Taxes
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