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 Billing, there are country specific taxes, multiple tax rates, and tax groups that you can configure according to your business’s needs.
IN THIS PAGE…
Adding New Taxes
To create or add a new Tax, follow steps as below:
- Navigate to Settings > Taxes & Compliance > Taxes.
- Click + New Tax.
- Provide a Tax Name.
- Enter the relevant Rate in percentage.
- Enable the checkbox if your newly created tax is going to be a compound tax.
Click Save.
Insight: Compound Tax - In some countries you might have to collect more than one tax from your customers. It is for you to pay to your local province and another to the federal authority. In certain cases, the provincial tax is applied on the total that includes the item or invoice amount as well as the federal tax amount. Such taxes are called as Compound Taxes.
Editing Taxes
To edit an existing tax, follow the steps below:
- Navigate to Settings > Taxes & Compliance > Taxes.
- Select a Tax.
- Make the necessary changes.
Click Save.
If this tax has already been applied in some transactions, you will asked to confirm if you wish to update the new tax rate in those transactions as well.
Deleting Taxes
To delete an existing tax follow steps as below:
- Navigate to Settings > Taxes & Compliance > Taxes.
Scroll over the desired tax row and click on the trash bin icon which appears. Confirmation pop-up screen will double check your intention. Click to OK to Delete or Cancel to skip.
Adding a New Tax Group
You can group more than two taxes together and apply it on your transactions. Let’s say you have to charge your customers a newly introduced cess rate, you can then create a tax group with your regular tax rate and the cess to apply them on your invoices.
The total tax rate of a tax group will be the sum of all the tax rates which are grouped under it. To create a tax group, you must ensure you have created two or more tax rates.
To create a new tax group:
- Go to Settings > Taxes & Compliance > Taxes > Tax Rates.
- Click the + New Tax Group button in the top right corner of the page.
- Enter the name of the tax group, and select the taxes you want to associate with this tax group.
- Click Save.
Create Taxes in Bulk
To create taxes in bulk:
- Go to Settings > Taxes & Compliance > Taxes > Tax Rates.
- Click the dropdown next to the + New Tax button on the top right corner of the page and select Create Taxes in Bulk.
- Enter the Tax Name and Rate (%).
- Click + Add Tax button to add more taxes.
- Check the option These taxes are compound taxes if the taxes added are calculated on top of a primary tax.
- Choose a common Tracking Preference for all the taxes added and click Save.
Zoho Billing will create the specified taxes.
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