Tax Rates and Tax Groups
Zoho Spend provides a set of default tax rates for Mexico and lets you create additional rates based on your business needs. You can also combine tax rates into tax groups when a single transaction requires multiple tax components to be applied simultaneously.
Tax Rates
The Tax Rates tab lists all tax rates available in your organisation. The following default rates are provided:
| Tax Name | Rate (%) | Tax Type |
|---|---|---|
| Local Tax | 10% | Local Tax |
| Reduced Rate | 8% | Value Added Tax |
| Special Tax on Production and Services | 10% | Special Tax on Production and Services |
| Standard Rate | 16% | Value Added Tax |
| Zero Rate | 0% | Value Added Tax |
You can filter the list by status using the dropdown at the top: All, Active, or Inactive.
Add a New Tax Rate
To create a new tax rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Click + New Tax.
- In the form that appears, enter the Tax Name.
- Enter the Rate (%).
- Select the Tax Type from the dropdown. The available types are:
- Value Added Tax
- Special Tax on Production and Services
- Local Tax
- Check This tax is a compound tax if the rate should be calculated on top of another tax, not on the base amount.
- Click Save.
Edit a Tax Rate
Note: System-generated default rates (Local Tax, Reduced Rate, Special Tax on Production and Services, Standard Rate, and Zero Rate) cannot be edited. Only custom tax rates you have created can be edited.
To edit a custom tax rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax 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 Tax Rate
Note: System-generated default rates (Local Tax, Reduced Rate, Special Tax on Production and Services, Standard Rate, and Zero Rate) cannot be deleted. Only custom tax rates you have created can be deleted.
To delete a custom tax rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the rate you want to delete and click the Dropdown icon.
- Select Delete.
- In the pop-up, click OK to confirm. The tax rate can no longer be used in transactions.
Mark a Tax Rate as Inactive
To mark a tax rate as inactive:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the rate and click the Dropdown icon.
- Select Mark as Inactive. The tax rate can no longer be used in transactions.
The rate is removed from the active list and will no longer be available for selection on new transactions.
Mark a Tax Rate as Active
To reactivate an inactive tax rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax 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. The tax rate can now be used in transactions.
View Associated Records
You can check which transactions or tax rule settings use a particular tax rate.
To view records associated with a tax rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax 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.
Tax Groups
A tax group lets you combine two or more tax 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 — for example, IVA and IEPS applied together.
Note: A tax group must include at least two tax components.
Create a Tax Group
To create a new tax group:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Click the dropdown arrow next to the + New Tax button.
- Select New Tax Group.
- In the dialog that appears, enter the Tax Group Name.
- Under Associate Taxes, select at least two tax rates to include in the group by checking the box next to each.
- Drag the tax rates to reorder them if needed.
- Click Save.
Edit a Tax Group
Note: Editing a tax group may affect existing transactions that use this group.
To edit a tax group:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the tax group you want to edit and click the Dropdown icon.
- Select Edit.
- Update the Tax Group Name or the associated taxes as needed.
- Click Save.
Delete a Tax Group
To delete a tax group:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the tax group you want to delete and click the Dropdown icon.
- Select Delete.
- In the pop-up, click OK to confirm. The tax group can no longer be used in transactions.
Mark a Tax Group as Inactive
To mark a tax group as inactive:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the tax group and click the Dropdown icon.
- Select Mark as Inactive. The tax group can no longer be used in transactions.
The tax group is removed from the active list and will no longer be available for selection on new transactions.
Mark a Tax Group as Active
To reactivate an inactive tax group:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Click the filter dropdown and select Inactive.
- Hover over the tax group you want to reactivate and click the Dropdown icon.
- Select Mark as Active. The tax group can now be used in transactions.
View Tax Group Details
System-generated tax 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 a tax group in read-only mode:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the tax group and click the Dropdown icon.
- Select View.
The group details panel opens showing the tax group name and all associated tax components with their rates.
View Records Associated with a Tax Group
To check which transactions or tax rule settings use a particular tax group:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click Tax Rates.
- Hover over the tax group and click the Dropdown icon.
- Select View Associated Records.
A panel opens showing all records linked to that tax group, including any tax rule settings that reference it.