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VAT Settings

In Germany, Value Added Tax [Umsatzsteuer] is levied by the German Tax Office [Finanzamt] on goods and services sold by registered businesses. You can configure VAT in Zoho Spend to apply the correct tax rates to your transactions.

Configure VAT

To set up VAT in your Zoho Spend organisation:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Settings.
  • Set Is your business registered for VAT? to Yes.
  • Enter your Tax Number.
  • The VAT Registration Number Label defaults to DE. You can change this if your VAT registration number uses a different country code.
  • Enter your VAT Registration Number (VRN).
  • Click Validate to verify the registration number.
  • Select your VAT Registration Date.
  • Click Save.

Note: Your VAT Registration Number must pass validation before the settings can be saved. If validation fails, check that the number matches the format provided by the German Tax Office [Finanzamt].

International Trade

If your organisation trades with vendors or customers outside Germany, you can enable international trade handling in Zoho Spend. This changes how VAT is applied to transactions with overseas contacts.

To enable international trade:

  • Go to Settings on the left sidebar.
  • Click VAT under Taxes & Compliance.
  • In the VAT pane, click VAT Settings.
  • Under International Trade, check the option Enable trade with contacts outside Germany.
  • Click Save.

Overseas Vendor Transactions

Once international trade is enabled, you can set a vendor’s VAT treatment to Overseas. When you do, transactions for that vendor reflect this:

  • The VAT Treatment field on the transaction form shows Overseas.
  • In the item table of a bill, the VAT column offers two options: Standard Rate [19%] and Reverse charge. Select Reverse charge when the reverse charge mechanism applies, for example for services received from overseas suppliers.
  • The Item Tax Preference control may become disabled, meaning the VAT rate cannot be manually changed at the item level.

To set a vendor’s VAT treatment to Overseas:

  • Go to Vendors on the left sidebar.
  • Open the vendor record and click Edit.
  • Set the VAT Treatment to Overseas.
  • Click Save.

If you are importing physical goods from an overseas vendor and need to record import duties and VAT, see Record Import VAT and Duty.

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