## Documentation Index Access the complete documentation index at: https://www.zoho.com/en-sg/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, multiple tax rates, and tax groups that you can configure according to your business’s needs. ## Enable GST If you didn’t enable GST while setting up your Zoho Books organisation, you can do it anytime in the _Taxes_ page. Here’s how: * Go to **Settings**. * Under _Organisation Settings_, select **Taxes** under _Taxes & Compliance_. * In the _GST Settings_ page, enable the toggle next to **Is your business registered for GST?**, and fill in the following fields: * **GST Registration Number:** Enter your business’s 10-digit GST registration number. * **GST Registration Date:** Select the date your business was registered under GST. * Click **Save**. ![GST Settings](/en-sg/books/help/images/settings/taxes/gst-settings.png) Your GST details will be registered. The GST Return Settings will now be enabled, and you can configure the preferences based on your business requirements. To do this: * Go to **Settings**. * Under _Organisation Settings_, select **Taxes** under _Taxes & Compliance_. * Click **GST Return Settings** in the Taxes pane. * In the _GST Return Settings_ page, fill in the following fields: * **Reporting Period:** Choose how you want to generate the returns in Zoho Books. The available options are: **Monthly**, **Quarterly**, and **Yearly**. * **Tax Return Start Date:** Choose the date from which you want to start generating returns in Zoho Books. Your first GST return will be generated from this date. * **Report Basis:** Choose how you want to report transactions in the return. The available options are **Accrual** and **Cash**. * Click **Save**. ![GST Return Settings](/en-sg/books/help/images/settings/taxes/gst-return-settings.png) The GST return settings will now be configured. You can now start generating your returns in Zoho Books. ## Tax Rates ### Default Tax Rates Once GST is enabled, the following GST rates will be available by default in the Singapore edition of Zoho Books. These default tax rates cannot be deleted or marked as inactive. The available tax rates are listed below: **Sales** **Tax Name** **Rate (%)** **Description** **GST9 \[SR\]** 9 Standard-rated supplies **GST0 \[ZR\]** 0 Zero-rated supplies **GST8 \[SR8\]** 8 Standard-rated supplies **Sales - Customer Accounting** **Tax Name** **Rate (%)** **Description** **GST9 \[SRCA-S\]** 9 Customer Accounting supply made by the supplier **Purchases** **Tax Name** **Rate (%)** **Description** **GST9 \[TX\]** 9 Standard-rated purchases **GST0 \[ZP\]** 0 Zero-rated purchases **GST9 \[BL\]** 9 Disallowed Expenses **GST9 \[IM\]** 9 Import of goods **GST9 \[ME\]** 9 Import of goods under the Major Exporter Scheme **GST9 \[IGDS\]** 9 Import of goods under the Import GST Deferment Scheme **GST8 \[TX-8\]** 8 Standard-rated purchases **Purchases - Reverse Charge** **Tax Name** **Rate (%)** **Description** **GST9 \[TXRC-TS\]** 9 Imported services and LVG (low-value goods) directly attributable to the making of the taxable supplies **GST9 \[SRRC\]** 9 Imported services and LVG accountable by the customer under the reverse charge mechanism **GST8 \[TXRC-TS-8\]** 8 Imported services and LVG (low-value goods) directly attributable to the making of the taxable supplies **GST8 \[SRRC-8\]** 8 Imported services and LVG accountable by the customer under the reverse charge mechanism **Purchases - Customer Accounting** **Tax Name** **Rate (%)** **Description** **GST9 \[TXCA\]** 9 Standard-rated supplies of prescribed goods subject to customer accounting **GST9 \[SRCA\]** 9 Customer Accounting supply accountable by the customer on supplier’s behalf **GST8 \[TXCA-8\]** 8 Standard-rated supplies of prescribed goods subject to customer accounting **GST8 \[SRRC-8\]** 8 Customer Accounting supply accountable by the customer on supplier’s behalf ### How Tax Rates Are Auto-Applied to Items in a Transaction A tax rate is automatically assigned to an item in a transaction based on three key details: * **Item’s Tax Category:** When you create an item, you select its tax category (e.g., electronics, hardware, services). Based on the selected tax category, the GST rate that’s applicable to the item is determined. * **Customer’s GST Eligibility:** When you create a customer, you mark them as **GST-eligible** and enter the **GST Registration Number**. This helps determine whether GST should be charged and how it should be handled. * **Customer’s Country/Region in Billing Address:** You select the customer’s country or region in the billing address. This helps identify whether the transaction is local or overseas and ensures the correct GST rate is applied (e.g., **0%** or **9%**). Based on these details, the correct GST rate is automatically applied to each item in a transaction. ### Other Important Considerations on How the Tax Rate Is Applied Based On Tax Categories * Local customers pay **9% GST** for standard-rated supplies in tax categories like **Default Product**, **Electronics**, **Hardware**, **Telecommunication Services**, and **Professional Services**. * Tax categories like **Financial services** and the import or **local supply of Investment Precious Metals (IPM)** are exempt from GST. * Overseas customers are charged **0% GST** for exports across all tax categories. * Singapore-registered customers who buy **Prescribed Goods** (such as Blackberry devices, memory sticks, tablets, and smartphones) with a sale value over **$10,000** must pay **9% GST** under _Customer Accounting_. ## Tax Operations ### View Details of a Tax Rate You can only view the details of the default tax rates. To view details of a tax rate: * Go to **Settings**. * Select **Taxes** under _Taxes and Compliance_. * In the _Taxes_ pane, click **Tax Rates**. * Hover over the default tax rate, click the dropdown on the right, and choose **View**. ![View Tax Rates](/en-sg/books/help/images/settings/taxes/view-taxes.png) You’ll now see the details of that tax rate. ### View Associated Records of a Tax Rate You can only view the associated records for the tax rates you created manually. To view the associated transactions of a tax rate: * Go to **Settings**. * Select **Taxes** under _Taxes and Compliance_. * In the _Taxes_ pane, click **Tax Rates**. * Hover over the tax rate, click the dropdown on the right, and choose **View Associated Records**. ![View Associated Records](/en-sg/books/help/images/settings/taxes/view-associated-records.png) In the _Associated Records_ panel on the right, you’ll view all sales and purchase transactions listed under the **Sales** and **Purchases** dropdown. ## Enable Taxes for Your Customers and Vendors ### Enable Taxes for Your Customer After you enable Taxes for your organisation, you can enable it for your customers and enter their GST details to ensure the correct tax rate is applied when creating transactions. To enable taxes for your customer: * Go to _Sales_ on the left sidebar, and select **Customers**. * Click **\+ New** in the top right corner to create a new customer, or select an existing customer and click **Edit** on the Customer Details page. * In the _New Customer_ or _Edit Customer_ page, complete the required fields. * Next, go to the _Other Details_ tab. In the _GST Registration_ field, check **This customer has a GST registered business**, and enter the customer’s GST registration number. ![View Associated Records](/en-sg/books/help/images/settings/taxes/customer-creation-taxes.png) * In the _Address_ tab, under _Billing Address_, select the customer’s country in the **Country/Region** field. ![Billing Address - Customers](/en-sg/books/help/images/settings/taxes/customer-address.png) * Click **Save**. Taxes will now be enabled for the customer. When you now create a transaction for the customer, the tax rates will automatically apply based on each item’s category. ### Enable Taxes for Your Vendor After you enable Taxes for your organisation, you can enable it for your vendors and enter their GST details to ensure the correct tax rate is applied when creating transactions. To enable taxes for your vendor: * Go to _Purchases_ on the left sidebar, and select **Vendors**. * Click **\+ New** in the top right corner to create a new vendor, or select an existing vendor and click **Edit** on the _Vendor Details_ page. * On the _New Vendor_ or _Edit Vendor_ page, complete the required fields. * Next, go to the Other Details tab. In the GST Registration field, check _This vendor has a GST registered business_, and enter the _vendor’s GST registration number_. ![Enable Taxes for Vendor](/en-sg/books/help/images/settings/taxes/vendor-creation-taxes.png) * In the _Address_ tab, under _Billing Address_, select the vendor’s country in the **Country/Region** field. ![Billing Address](/en-sg/books/help/images/settings/taxes/vendor-billing-address.png) * Click **Save**. Taxes will now be enabled for this vendor. ## Non-Taxable Sections Apart from the taxes applied to transactions, some transactions are tax-exempt or out of scope. These transactions use specific codes, which include: **Non-Taxable Sections** **Non-Taxable Codes** **Description** **Regulation 33 Exempt Supplies** ES33 Use this when you sell GST-exempt goods or services that meet Regulation 33 conditions. **Non-Regulation 33 Exempt Supplies** ESN33 Use this when you sell GST-exempt goods or services that do not meet Regulation 33 conditions. **Exempt Purchases** EP Use this when you purchase GST-exempt goods or services. **Non-Registered** NR Use this when you purchase goods or services from vendors who aren’t registered under GST. **Out of Scope Sales** OS Use this when you sell goods or services completely outside Singapore. **Out of Scope Purchases** OP Use this when you purchase goods or services completely outside Singapore. **Insights:** * Regulation 33 (Singapore GST) allows businesses to treat certain supplies as exempt. This rule is important for financial institutions, exporters, and businesses dealing with cross-border transactions. * Regulation 33 applies to the interest income on deposit of money in a financial institution in Singapore, realised exchange gain or loss, interest charged on customers when goods are sold to them on credit, and on the interest income received from bonds. * It does not apply to the sale or lease of residential properties, investments in precious metals, local financial services, or digital payment tokens. These are treated as Non-Regulation 33 exempt supplies. ## Modify GST Settings **Prerequisite:** You cannot edit the settings if tax returns have already been generated. To make changes, delete the existing returns first. After setting up GST for your organization, you can update the settings as needed. To modify GST settings : * Go to **Settings**. * Select **Taxes** under _Taxes & Compliance_. * In the _Taxes_ pane, choose **GST Settings**. * Under _Is your business registered for GST?_, make the required changes. * Click **Save**. ![Modify GST Settings](/en-sg/books/help/images/settings/taxes/modify-gst-settings.png) Your organization’s GST details will be updated with the new information. **Insight:** Taxes on sales transactions are automatically calculated using the customer’s address and item categories, so there’s no need to select tax rates manually. ## Tax Automation Settings ### Configure the Tax Automation Address Preferences for Sales Transactions You can set up tax automation address preferences for your sales transactions in Zoho Books. To do this: * Go to **Settings**. * Select **Taxes** under _Taxes & Compliance_. * In the Taxes pane, choose Tax Automation Settings. * Under _Tax Automation Address Preference for Sales Transactions_, choose one of the following: * **Billing Address:** Use your customer’s billing address to apply tax to the sales transaction. * **Shipping Address:** Use your customer’s shipping address to apply tax to the sales transaction. * Click **Save**. The tax will now be applied to your customer’s sales transactions based on the address you selected. ![Tax Automation Settings](/en-sg/books/help/images/settings/taxes/tax-automation-settings.png) ## Reverse Charge The Reverse Charge is a mechanism under the Goods and Services Tax that applies when you receive imported services or low-value goods (valued at SGD 400 or less) from overseas suppliers. ### Apply Reverse Charge to Purchase Transactions To apply a reverse charge to a purchase transaction: * Go to _Purchases_ on the left sidebar and select **Bills** or **Expenses**. * Click **\+ New** in the top right corner. * Enter the required transaction details. * Check **This transaction is applicable for reverse charge**. * Click **Save**. Once saved, the transaction will be recorded with reverse charge. ## Disable Taxes **Note:** You cannot disable taxes if tax returns have been generated. Delete the existing returns before you disable taxes. To disable taxes: * Go to **Settings**. * Select **Taxes** and _Taxes & Compliance_. * Click _GST Settings_ on the left sidebar. * Hover over _Is your business registered for GST?_ and toggle it to **No**. * Click **Save**. Taxes will now be disabled for your organisation.