VAT Settings
In Mexico, Value Added Tax (VAT), known as IVA (Impuesto al Valor Agregado), is administered by the Servicio de Administración Tributaria (SAT) and applies to most goods and services. If your business is registered for VAT, you can configure your registration details in Zoho Procurement. This ensures the correct tax is applied to your bills, purchase orders, and purchase requests.
Enable VAT
To enable VAT in Zoho Procurement:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Settings.
- Toggle Is your business registered for VAT? to Yes.
- Enter or update the following details:
| Field | Description |
|---|---|
| VAT Registration Number Label | The label for your VAT registration number. Defaults to VAT. |
| VAT Registration Number (RFC)* | Your RFC (Registro Federal de Contribuyentes) number assigned by SAT. |
| Business Legal Name* | The legal name of your business as registered with SAT. |
| VAT Registered On* | The date your business was registered for VAT. |
| Tax Regime* | The SAT fiscal regime applicable to your business (e.g., 605 – Wages and Salaries). |
- Click Save.
Enable TDS
TDS (Tax Deducted at Source) can be associated with vendors in Zoho Procurement. Enabling TDS allows you to apply TDS rates to specific vendors.
To enable TDS:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Settings.
- Check Enable TDS under the TDS section.
- Click Save.
Once enabled, a TDS Rates tab will appear under Taxes & Compliance > Taxes, and you can assign a TDS rate to individual vendors. See TDS Rates for more details.
Enable VAT for a Vendor
After enabling VAT, you can configure VAT details for each vendor so the correct tax treatment is applied to their transactions.
To enable VAT for a vendor:
- Go to Vendors on the left sidebar.
- Create a new vendor or open an existing vendor and click Edit.
- In the Other Details tab, select the VAT Treatment:
| VAT Treatment | Description |
|---|---|
| Within Mexico | A business that is located in Mexico. |
| Border Regions | A business that is located in Mexico’s northern or southern border regions. |
| Overseas | A business that is located outside Mexico, with whom you import or export supplies. |
- Enter the vendor’s VAT Registration Number (RFC).
- Click Validate RFC to verify the RFC number with SAT (optional).
- Click Save.
The VAT Treatment set here is automatically applied when you create a bill, purchase order, or purchase request for this vendor. To update it for a specific transaction, click the Edit icon next to the VAT Treatment field on the transaction page.