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Items
When you add an item in Zoho Books, you can configure the appropriate tax applicable on it. This tax will be auto-populated whenever you create transactions for this item. To configure the tax rate of items:
- Go to the Items module from the left sidebar and click Items.
- Click + New on the top right corner.
- Select the Tax applicable on the item.
![Item VAT Settings](/books/help/images/vat/item-taxes.png)
VAT treatments such as Exempt and Out of Scope can be selected while creating transactions.
Learn more about the different VAT rates that can be applied to items.
Next:
VAT in Transactions >