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Tax Settings

In Mexico, Value Added Tax (Impuesto al Valor Agregado, IVA) is levied by the Tax Administration Service (Servicio de Administración Tributaria, SAT) on goods and services sold by registered businesses. You can configure your tax settings 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.
    (OR)
    Click Settings in the top right corner of the page.
  • Click Taxes under Taxes & Compliance.
  • In the Taxes pane, click Tax Settings.
  • Set Is your business registered for VAT? to Yes.
  • The VAT Registration Number Label defaults to VAT. You can update this label if needed.
  • Enter your VAT Registration Number (RFC). The RFC (Registro Federal de Contribuyentes) is the 12-digit alphanumeric number you received when you registered for VAT in Mexico.
  • Enter your Business Legal Name.
  • Select the VAT Registered On date. This is the date on which your business was registered for VAT.
  • Select the applicable Tax Regime from the dropdown. This corresponds to your fiscal regime as classified by the SAT (for example, 625 Regime of Business Activities with Income via Digital Platforms).
  • Click Save.

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 TreatmentDescription
Within MexicoA business that is located in Mexico.
Border RegionsA business that is located in Mexico’s northern or southern border regions.
OverseasA 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.

Enable TDS

Tax Deducted at Source (TDS) can be associated with vendors in Zoho Spend. When enabled, you can configure TDS for a specific vendor.

To enable TDS:

  • 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 Settings.
  • Under the TDS section, check Enable TDS.
  • Click Save.
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