Taxes

Taxes are an integral part of your business. The taxes you need to apply depends on the business location and the type of business you run.

In Zoho ERP, you can set country-specific taxes, create multiple tax rates, and add group taxes as required. This helps you calculate and apply the right taxes on your transactions, and stay compliant with the tax authority’s regulations.

Add Tax Rates

To add a tax rate to your Zoho ERP organisation:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Click + New Tax in the top right corner.
• In the New Tax page, fill in the following fields:
  • Tax Name: Enter the name of the tax rate.
  • Rate (%): Enter the required tax percentage.
  • Tax Type: Select the type of tax you’re adding to your organisation.
• Click Save.

The tax rate will be added.

Create Tax Groups

You can group two or more taxes together and apply them to your transactions. To do so:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Click the + New Tax dropdown in the top right corner, and select New Tax Group from the dropdown.
• In the New Tax Group, fill in the following fields:
  • Tax Group Name: Enter a name for the tax group.
  • Associate Taxes: Select the tax rates you want to add in the tax group. You can add up to 5 taxes in a tax group.
• Click Save.

The tax group will be created.

Add Tax Rates From Other Sources

Import Taxes

If you have tax rates stored locally, and want to use it in your business, you can import them into your Zoho ERP organisation. To import:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Click the More icon in the top right corner, and select Import Taxes from the dropdown.
• In the next page, click Choose File to upload the required file. Note that you can upload the import file in CSV, TSV, or XLS formats, with a maximum size of 25 MB.
• Check if the Character Encoding and Field Delimiter matches your import file.
• Click Next.
• In the Map Fields page, check if the headers in the import file are correctly matched to the fields in your organisation.
• Enable Save these selections for use during future imports if you want to reuse the same mapping again.
• Click Next.
• In the Preview page, click Import.

The taxes will be imported into your Zoho ERP organisation. Similarly, you can also import tax groups.

Taxes - Operations

View Associated Records

To view the list of transactions associated with a tax rate:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Hover over the required tax rate, click the dropdown icon next to it, and select View Associated Records.

The list of transactions associated with the tax rate will be displayed.

Edit Tax Rates

To edit the tax rates you’ve added:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Hover over the tax rate you want to edit, click the dropdown icon next to it, and select Edit.
• In the Edit Tax page, make the required changes.
• Click Save.

The tax rate will be updated.

Mark Tax Rates as Inactive

If you don’t want a tax to be applied to your transactions, but don’t want to delete it, you can mark it as Inactive instead. To do so:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Hover over the required tax rate, click the dropdown icon next to it, and select Mark as Inactive.

The tax rates will be marked as Inactive. To continue using the tax, follow the same steps and click mark as Active.

Delete Tax Rates

If you no longer want to use a tax rate in your business, you can choose to delete it. Here’s how:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Hover over the tax rate, click the dropdown icon next to it, and select Delete.
• In the confirmation pop-up, click OK.

The tax rates will be deleted. You can also delete the tax rates in bulk. Here’s how:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Select the tax rates and click Delete at the top of the page.
• In the confirmation pop-up, click OK.

The selected tax rates will be deleted at once.

Export Tax Rates

To export tax rates from your Zoho ERP organisation:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Rates in the left pane.
• Click the More icon in the top right corner, and select Export Taxes from the dropdown.
• In the Export Tax pop-up, fill in the required fields.
• Click Export.

The taxes will be exported in the chosen file format. Similarly, you can also export tax groups.

Tax Exemptions

Under the GST regime, certain goods and services are exempted from tax. Businesses will also not be able to claim ITC (Input Tax Credit) on their sales transactions. In such cases, you can create tax exemptions in your Zoho ERP organisation, and apply them to the respective items while creating transactions.

To create a tax exemption:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Exemption in the left pane.
• Click + New Tax Exemption in the top right corner.
• In the New Tax Exemption pop-up, fill in the following fields:
  • Exemption Reason: Enter the reason you’re creating this exemption. For example, Non-Profit Organisation.
  • Description: Provide a short description for creating this tax exemption.
  • Type: Choose the entity this exemption is applied to. The available options are Customer and Item.
• Click Save.

The tax exemption will be created.

Delete Tax Exemptions

If you no longer want to apply a tax exemption to your transactions, you can delete it. Here’s how:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Tax Exemption in the left pane.
• Select the exemptions and click Delete at the top of the page.
• In the confirmation pop-up, click OK.

The tax exemptions will be deleted.

Default Tax Preferences

If your business deals with specific taxes, you can set them as default in your Zoho ERP organisation, if required. To do so:

• Go to Settings.
• Under Organization Settings, click Taxes under Taxes & Compliance.
• In the next page, click Default Tax Preferences in the left pane.
• In the next page, choose the Intra State Tax Rate and Inter State Tax Rate applicable to your business.
• Click Save.

The default tax preferences will be updated.

Enable GST Settings

If your business has been registered for GST, you can enable it in your Zoho ERP organisation. To do this:

• Go to Settings.
• Under Organization Settings, select Taxes under Taxes & Compliance.
• In the next page, select GST Settings in the left pane.
• Enable the toggle next to Is your business registered for GST?, and fill in the following fields:
  • GSTIN: Enter your business’s 15-digit GSTIN. Click Get Taxpayer Details to check if you’ve entered correct GSTIN.
  • Registration Type: Choose the required type your business is registered under.
    • If your business is registered as Registered Business - Composition, choose the required Composition Percentage Scheme.
  • Business Legal Name: Enter your business’s name that is registered under GST.
  • Business Trade Name: If your business’s name differs from its legal name, provide it here.
  • GST Registered Date: Choose the date when your business was registered under GST.
  • Reverese Charge: Check the Enable Reverse Charge in Sales transactions option if your business deals with customers who are liable to pay taxes for certain transactions.
  • Import/Export: Enable My business is involved in SEZ/Overseas Trading if your business deals with customers based in SEZs (Special Economic Zones) or foreign countries.
    • Once you enable this option, choose a default Custom Duty Tracking Account to track their transactions.
  • Digital Services: Enable Track sale of digital services to overseas customers if you provide digital services (such as software or cloud services) to foreign customers.
• Click Save.

GST will now be enabled in your Zoho ERP organisation.

Enable GST for Location Enabled Organisations

If you’ve enabled Locations in your ERP organisation, it is mandatory to add GSTINs for all active locations.

To add GSTIN for your locations in Zoho ERP:

• Go to Settings.
• Under Organization Settings, select Taxes under Taxes & Compliance.
• In the next page, click + New GSTIN under GST Settings in the left pane.
• In the New GSTIN pop-up, fill in the required details.
• Click Save.

GST will be enabled for the respective location.

Associate GSTIN and Mark Locations as Active

If you’ve marked a location as inactive and now want to associate a GSTIN with it, you must first associate the GSTIN with the location, and then mark it as Active. Here’s how:

• Go to Settings.
• Under Organization Settings, select Locations under Organization.
• In the next page, click Associate GSTIN next to the inactive location.
• In the pop-up that appears, enter the required details.
• Click Save.

The GSTIN will be added for the location. Now, to mark it Active, hover over the required location, click the dropdown icon next to it, and select Mark as Active.

Online Filing Settings

In Zoho ERP, you can connect your organisation with GSTN to file returns directly, or push your data to the portal and file your returns. For this, you need to enable online filing in your organisation.

To enable:

• Go to Settings.
• Under Organization Settings, select Taxes under Taxes & Compliance.
• In the next page, click Online Filing Settings the left pane.
• In the next page, fill in the following fields:
  • GSTN Username: Enter your username issued by the GSTN.
  • Reporting Period: Choose the required reporting period to file returns. The available options are Monthly and Quarterly.
  • Generate First Tax Return From: Choose the date from which you want to start generating returns in your Zoho ERP organisation.
  • GST Filing Approval: Check the Enable approval process for filing GST Returns option if you wish to submit the returns to admin and get it approved before submission.
    • Once enabled, select the required approvers.
• Click Save.

Online Filing will now be enabled in your Zoho ERP organisation.