VAT Settings
This section will give you a brief overview about how you can configure VAT in Zoho Books.
Configure VAT in Zoho Books
To set up VAT rates in Zoho Books, you should enable it in your organization. Here’s how:
Enable VAT Settings
To enable VAT settings for your organization in Zoho Books:
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Go to Settings in the top right corner of the page.
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Navigate to Taxes & Compliance and click VAT.
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Slide the toggle next to Is your business registered for VAT?
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Enter the VAT Registration Number.
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Check the Enable trade with contacts outside South Africa box if your business involves International trade.
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Enter the VAT Registered On date.
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Enter the Generate First Tax Return From date. Only the transactions created on or after this date will be included in the return.
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Click Save.
VAT Rates
Once VAT is enabled, the following tax rates will be added to your organization and will be automatically applied to future transactions:
- Standard Rate [15%] - Most of the goods and services that are included in transactions after April, 2018 fall under this tax rate.
- Zero Rate [0%] - A tax rate of 0% is applied on goods that are agricultural supplies, residential lettings. Services that include road and rail transport, financial services, money lending, retirement and medical benefits, and international support are zero-rated.
- Exempt - Tax exempt is provided in the following cases:
- Non-fee related financial services
- Educational services provided by an approved educational institution
- Residential rental accommodation
- Road and rail public passenger transport
- Old Standard Rate [14%] - Most of the goods and services that are included in transactions before April, 2018 fall under this tax rate.
- Change in use (Non-taxable supplies) [15%] - Purchasing a good for business, intending for making taxable supplies and later using it for personal use.
- Change in use (Taxable supplies) [15%] - Purchasing a good for personal use and later using it for taxable supplies.
- Export of second-hand goods - Purchasing a second-hand good and exporting it later.
- Supply of accommodation exceeding 28 days [15%] - When accommodation is provided for more than 28 days, the VAT will be calculated only for 60% of the total cost.
- Supply of accommodation not exceeding 28 days [15%] - When accommodation is provided for 28 or less than 28 days, the VAT will be calculated for the total cost.
Add VAT
You can add the old standard rate [14%] by creating a new one. Here’s how:
- Click + New VAT.
- Enter the Tax Name and Rate.
- Associate a Tax Type from the dropdown.
- Click Save.
The new tax rate will be created.
Edit VAT
You can only edit the VAT that you have created. Changes cannot be made to the default VAT rates.
To edit a VAT rate:
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Hover over and click the down arrow next to the tax rate you’ve created.
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Select Edit and make the required changes.
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Click Save.
Delete VAT
To delete a VAT rate:
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Hover over and click the down arrow next to the tax rate you’ve created.
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Select Delete from the dropdown.
The VAT rate will be deleted.
Mark VAT as Inactive
The default taxes that you don’t want to use can be marked as inactive. To do this:
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Hover over a default tax rate and click the down arrow next to it.
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Select Mark as Inactive from the dropdown.
The VAT rate will be marked as inactive.
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