Zoho spend logo Help Docs
/

VAT Rates and VAT Groups

Zoho Spend provides a set of default VAT rates for Germany and lets you create additional rates based on your business needs. You can also combine rates into VAT groups when a single transaction must apply more than one tax component at the same time.

VAT Rates

The VAT Rates tab lists all VAT rates available in your organisation. Three default rates are provided:

Rate NameRate
Standard Rate19%
Reduced Rate7%
Zero Rate0%

You can filter the list by status using the dropdown at the top: All, Active, or Inactive.

Add a New VAT Rate

To create a new VAT rate:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Click + New VAT.
  • In the form that appears, enter the VAT Name.
  • Enter the Rate (%).
  • Check This is a compound tax if the rate should be calculated on top of another tax, not on the base amount.
  • Click Save.

Edit a VAT Rate

To edit an existing VAT rate:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the rate you want to edit and click the Dropdown icon.
  • Select Edit.
  • Update the fields as needed.
  • Click Save.

Delete a VAT Rate

To delete a VAT rate:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the rate you want to delete and click the Dropdown icon.
  • Select Delete.
  • Click OK to confirm.

Mark a VAT Rate as Inactive

Note: System-generated rates (Standard Rate, Reduced Rate, Zero Rate) cannot be marked as inactive.

To mark a custom VAT rate as inactive:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the rate and click the Dropdown icon.
  • Select Mark as Inactive.

Mark a VAT Rate as Active

To reactivate an inactive VAT rate:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Click the filter dropdown and select Inactive.
  • Hover over the rate you want to reactivate and click the Dropdown icon.
  • Select Mark as Active.

View Associated Records

You can check which transactions or tax rule settings use a particular VAT rate.

To view records associated with a VAT rate:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the rate and click the Dropdown icon.
  • Select View Associated Records.

A panel opens showing the records linked to that rate, including any Tax Rule Settings that reference it.

VAT Groups

A VAT group lets you combine two or more VAT rates into a single tax entry that can be applied to a transaction. This is useful when a transaction is subject to multiple tax components at the same time.

Note: A VAT group must include at least two tax components.

Create a VAT Group

To create a new VAT group:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Click the dropdown arrow next to the + New VAT button.
  • Select + New VAT Group.
  • In the form that appears, enter the VAT Group Name.
  • Select at least two taxes to include in the group.
  • Drag the tax entries to reorder them if needed.
  • Click Save.

Edit a VAT Group

When you edit a VAT group, Zoho Spend will ask how to handle any existing draft transactions and recurring transactions that use this group.

To edit a VAT group:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the VAT group and click the Dropdown icon.
  • Select Edit.
  • In the confirmation dialog, select which Draft Invoices and Recurring Transactions to update with the new details.
  • Check the confirmation checkbox to acknowledge the change.
  • Update the group as needed and click Save.

Delete a VAT Group

To delete a VAT group:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the VAT group and click the Dropdown icon.
  • Select Delete.
  • Click OK to confirm.

Mark a VAT Group as Inactive

To mark a VAT group as inactive:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the VAT group and click the Dropdown icon.
  • Select Mark as Inactive.

Mark a VAT Group as Active

To reactivate an inactive VAT group:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the VAT group and click the Dropdown icon.
  • Hover over the group you want to reactivate and click the dropdown icon.
  • Select Mark as Active.

View VAT Group Details

Inactive VAT groups can be viewed in read-only mode. This shows the group name and the tax components it contains, but does not allow editing.

To view an inactive VAT group:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the VAT group and click the Dropdown icon.
  • Hover over the group and click the dropdown icon.
  • Select View.

View Records Associated with a VAT Group

To check which transactions or tax rule settings use a particular VAT group:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Rates.
  • Hover over the VAT group and click the Dropdown icon.
  • Select View Associated Records.
ON THIS PAGE