Value-added tax (VAT) is a tax on goods and services that is added at each stage of the supply chain where value is added, from initial production to the point of sale. In Zoho Books you can add taxes to the transactions based on the government regulations. This section will give you an overview about how you can configure and add tax rates in Zoho Books.

Configure Tax Settings

You’ll first have to enable and set up taxes for your organisation in Zoho Books:


VAT Rates

You can create the tax rates that are applicable for your business based on the goods and services that your business deals with.

By default, the following VAT rates are available once you enable taxes in Zoho Books:

Add VAT Rate

There might be cases where you might have to create VAT rates in Zoho Books based on your business requirements. To create a new tax rate:

New Taxes

After you create a new VAT rate:

Tax Groups

You can group taxes together and apply them to your transactions.

The total tax rate of a tax group will be the sum of all the tax rates which are grouped under it.

Prerequisite:Before you create a tax group, ensure that you have created two or more tax rates in Zoho Books.

To create a new tax group:

Tax Group

Edit VAT Rate

You can make changes to any tax rate that you have added in Zoho Books. Here’s how:

Terms and Conditions

Warning: If you edit a tax rate that has been applied in an active recurring profile, the tax rate in the recurring profile will be updated as well.

Delete VAT Rate

If you no longer need a tax rate that you created, you can delete it in Zoho Books. Here’s how:

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