## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-sg/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How do tax categories work?

Tax categories ensure the correct tax rate is applied based on an item’s type. In Zoho Books, when you assign a tax category to an item, the system automatically applies the right tax rate whenever you add that item to a transaction.