## Documentation Index

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

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

# Taxes

Taxes are an integral part of any business. The taxes applicable to your business are determined by your business’s location and type. In Zoho Books, there are country specific taxes that you can configure according to your business’s needs.

## Tax Rates

In this section, you can create the tax rates that are applicable for your business based on the goods and services that your business deals with.

### Add Tax Rate

To create a new tax rate:

*   Go to **Settings** in the top right corner of the page.
*   Select **Taxes** under _Taxes & Compliance_.
*   In the _Taxes_ pane, select **Tax Rates**.
*   Click **\+ New Tax** in the top right corner of the page.
*   Fill in the **Tax Name** and the **Rate (%)** at which it’s levied.

![New Tax Rate](/books/help/images/settings/taxes/new-tax-rate.png)

*   If you are currently [tracking taxes](/en-fr/books/help/settings/taxes.html#tax-tracking) under separate accounts, you can choose to track taxes under a single account. Here’s how:
    
*   Go to **Settings** in the top right corner of the page.
    
*   Select **Taxes** under _Taxes & Compliance_.
    
*   In the left sidebar, select **Tax Settings**.
    
*   In this page, scroll down and select **Track taxes under a single account** under _Tax Tracking Account Preference_.
    
*   Click **Save**.
    

![New Tax Rate](/books/help/images/settings/taxes/new-tax-rate2.png)

After you create a new tax, you can associate it to your items or apply it when creating a transaction.

**Items**

A default tax rate can be set for an item in Zoho Books. Doing so, the next time you create a transaction for this item, its set tax rate will be shown automatically.

![Item Tax](/books/help/images/settings/taxes/items-tax.png)

**Transactions**

The tax rates for different items can be changed at the transaction level.

![Invoice Tax](/books/help/images/settings/taxes/invoice-tax.png)

### Edit Tax Rate

You can make changes to any tax rate that you have added in Zoho Books. Here’s how:

*   Go to **Settings** in the top right corner of the page.
*   Select **Taxes** under _Taxes & Compliance_.
*   In the _Taxes_ pane, select **Tax Settings**.
*   Hover over the tax and click **Edit**.
*   After making the necessary changes, click **Save**.

![Edit Tax Rate](/books/help/images/settings/taxes/edit-tax-rate.png)

*   If this tax has already been applied in some transactions, you will be asked to confirm if you wish to update the new tax rate in those transactions as well.

![Edit Tax Rate](/books/help/images/settings/taxes/edit-tax.png)

**Warning:** Editing the tax rates will update them in active recurring profiles you had created as well.

### Delete Tax Rate

You can delete any tax rate that you have created in Zoho Books. Here’s how:

*   Go to **Settings** in the top right corner of the page.
*   Select **Taxes** under _Taxes & Compliance_.
*   In the _Taxes_ pane, select **Tax Rates**.
*   Hover over the desired tax and click the **Delete** icon.
*   Click **OK** to confirm.

![Delete Tax Rate](/books/help/images/settings/taxes/delete-tax-rate.png)

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## Create Taxes in Bulk

To create taxes in bulk:

*   Go to **Settings** in the top right corner of the page.
*   Select **Taxes** under _Taxes & Compliance_.
*   In the _Taxes_ pane, select **Tax Rates**.
*   Click the dropdown next to **\+ New Tax** on the top right corner of the page and select **Create Taxes in Bulk**.

![Create Taxes in Bulk](/books/help/images/settings/taxes/create-tax1.png)

*   Enter the _Tax Name_ and _Rate (%)_.
*   Click **\+ Add Tax** button to add more taxes.
*   Choose a common _Tracking Preference_ for all the taxes added and click **Save**.

![Add Tax](/books/help/images/settings/taxes/add-tax2.png)

Zoho Books will create the specified taxes.

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In Zoho Books, you can configure how the taxes should be tracked. Let’s take a look at them.

### Track Tax Account

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

*   [Single Account](/books/help/settings/taxes.html#single-account)
*   [Separate Accounts](/books/help/settings/taxes.html#separate-account)

### 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.

![Track Taxes](/books/help/images/settings/taxes/track-tax-single.png)

### 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:

*   Go to **Settings** in the top right corner of the page.
*   Select **Taxes** under _Taxes & Compliance_.
*   In the _Taxes_ pane, select **Tax Settings**.
*   Select **Track Taxes Under Separate Accounts**.

![Track Taxes](/books/help/images/settings/taxes/track-tax-seperate.png)

**Insight:** If you have chosen to track taxes under separate accounts, you can choose to track taxes under a single account while creating a new tax or editing an existing one.

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