Tax Setting
Zoho FSM supports taxes for your transactions, with region-specific tax rules. With respect to tax systems, Zoho FSM provides support for the following regions:
You can choose the preferred edition by selecting the appropriate country during the initial set-up.
Taxes
The taxes can be defined during the initial set-up. The taxes defined here can be edited later at Setup > Billing > Tax Setting. The taxes can also be edited at Settings > Taxes in Zoho Invoice.
Follow the steps below to add taxes in FSM:
- Navigate to Setup > Billing > Tax Setting.
- Click Create under Taxes tab.
- Enter the following details and click Save.
- Tax Name
- Rate
- Tax Authority
Tax consideration with Invoice Sync Settings
Based on the sync setting, the tax-related properties will be considered from either the Contacts and Companies module. Refer to the table below:
| Sync Setting | Tax considered from Module |
| Contacts | Contacts |
| Companies | Companies |
| Companies and Contacts | Companies |
| Companies and Contacts (Companies not mandatory) | Contacts |
Tax Exemption
You can create tax exemptions in Zoho Invoice and apply them to services/products.
- Log into your Invoice account
- Click the Gear [
] icon on the top-right corner, and select Taxes.
- Select the Tax Exemptions menu and click New Tax Exemption.
- In the New Tax Exemption overlay, enter the following details and click Save.
- An Exemption Reason.
- A Description of the reason.
- A Type.
Choose whether the exemption reason is applicable for an item or a contact.
You can also add tax exemptions in FSM. Navigate to Setup > Billing > Tax Setting. Select the Tax Exemptions tab and click Create.
Australia Edition
In this edition, the tax-related properties can be added for Services And Products, Contacts, and Companies. These values will be used while creating Estimates and Work Orders.
The tax type available is GST.
Services And Products
While adding a Service or Product, you can choose one of the following values:
- Taxable
- Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Contacts
While adding a Contact, you can choose one of the following values:
- Taxable. Contact Tax should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Companies
While adding a Company, you can choose one of the following values:
- Taxable. A Company Tax should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Estimates and Work Orders
While creating an Estimate or Work Order, the value of the Tax Name field for Services/Products will be prefilled based on the value of the field Taxable for the Contact and Service/Product. Refer table below for details:
| IF the value of Taxable of the Contact is | AND the value of Taxable of Service/Product is | THEN the value of Tax Name of Service/Product will be | Remarks |
| Taxable | Taxable | Contact Tax | Value of Tax Name can be edited |
| Taxable | Non-Taxable | Exemption Reason of Service/Product | Value of Tax Name can be edited |
| Non-Taxable | Taxable | Exemption Reason of the Contact | Value of Tax Name cannot be edited |
| Non-Taxable | Non-Taxable | Exemption Reason of the Contact | Value of Tax Name cannot be edited |
Canada Edition
In this edition, the tax-related properties can be added for Services And Products, Contacts, and Companies. These values will be used while creating Estimates and Work Orders.
The tax type available is Sales Tax.
Services And Products
While adding a Service or Product, you can choose one of the following values:
- Taxable
- Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Contacts
While adding a Contact, you can choose one of the following values:
- Taxable. Contact Tax should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason and Tax Authority should be selected if Non-Taxable is chosen.
Companies
While adding a Company, you can choose one of the following values:
- Taxable. A Company Tax should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason and Tax Authority should be selected if Non-Taxable is chosen.
Estimates and Work Orders
While creating an Estimate or Work Order, the value of the Tax Name field for Services/Products will be prefilled based on the value of the field Taxable for the Contact and Service/Product. Refer table below for details:
| IF the value of Taxable of the Contact is | AND the value of Taxable of Service/Product is | THEN the value of Tax Name of Service/Product will be | Remarks |
| Taxable | Taxable | Contact Tax | Value of Tax Name can be edited |
| Taxable | Non-Taxable | Exemption Reason of Service/Product | Value of Tax Name can be edited |
| Non-Taxable | Taxable | Exemption Reason of the Contact | Value of Tax Name cannot be edited |
| Non-Taxable | Non-Taxable | Exemption Reason of the Contact | Value of Tax Name cannot be edited |
India Edition
In this edition, the tax-related properties can be added for Services And Products, Contacts, and Companies. These values will be used while creating Estimates and Work Orders.
The tax type available is GST.
Services And Products
While adding a Service or Product, you can choose one of the following values:
- Taxable. Values for Intra State Tax Rate and Inter State Tax Rate should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Adding Tax Rates
- Log into your Books/Invoice account.
- Click the Gear [
] icon on the top-right corner, and select Taxes.
- Select the Tax Rates menu and click New Tax.
- In the New Tax overlay, enter the following details and click Save.
- A Tax Name and Rate(%)
- A Tax Type
Tax rates created with the type IGST will be listed for Inter State Tax Rate and Tax Group created with tax rates of types SGST and CGST will be listed for Intra State Tax Rate.
Contacts
While adding a Contact, you can choose one of the following values:
- Taxable
- Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Based on the value selected for GST Treatment, the fields Place of Supply, and GST IN number will be displayed.
Companies
While adding a Company, you can choose one of the following values:
- Taxable
- Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Based on the value selected for GST Treatment, the fields Place of Supply, and GST IN number will be displayed.
Estimates and Work Orders
While creating an Estimate or Work Order, the value of the Tax Name field for Services/Products will be prefilled based on the value of the fields
- GST Treatment of the Contact
- Place of Supply of the Work Order
- Taxable of the Contact
- Taxable of the Service/Product
Refer table below for details:
If value of GST Treatment of the Contact is | and value of the Place of Supply of the Work Order is | and value of Taxable of Contact is | and value of Taxable of Service/Part is | THEN value of Tax Name of Service/Part will be | Remarks |
Registered Business - Regular Registered Business - Composition Unregistered Business Consumers Deemed Export
| Same as the organization Place of Supply* | Taxable | Taxable | Intra State Tax Rate of Service/Part |
|
Taxable | Non-Taxable | Exemption Reason of Service/Part
| Value of Tax Name can be edited | ||
Non-Taxable | Taxable | Exemption Reason of Service/Part | Value of Tax Name cannot be edited | ||
Non-Taxable | Non-Taxable | Exemption Reason of Service/Part | Value of Tax Name cannot be edited | ||
Taxable / Non-Taxable | Not selected | GST0
|
| ||
Different from the organization Place of Supply* | Taxable | Taxable | Inter State Tax Rate of Service/Part |
| |
Taxable | Non-Taxable | Exemption Reason of Service/Part | Value of Tax Name can be edited | ||
Non-Taxable | Taxable | Exemption Reason of Service/Part | Value of Tax Name cannot be edited | ||
Non-Taxable | Non-Taxable | Exemption Reason of Service/Part | Value of Tax Name cannot be edited | ||
Taxable / Non-Taxable | Not selected | IGST0 IGST12 (for Registered Business - Regular) | Value of Tax Name can be edited | ||
Overseas | - | - | Taxable / Non-Taxable | IGST0
| Only IGST type tax with 0% rate can be selected |
Special Economy Zone Goverment SEZ Developer | Same as the organization Place of Supply* | Taxable / Non-Taxable | Taxable / Non-Taxable | IGST0
| Only IGST type tax with 0% rate can be selected |
Different from the organization Place of Supply* | Taxable / Non-Taxable | Taxable / Non-Taxable | IGST0
| Only IGST type tax with 0% rate can be selected |
*The organization Place of Supply is the State in Company Address (Settings > Organization Profile) in your Books/Invoice account.
USA Edition
In this edition, the tax-related properties can be added for Services And Products, Contacts, and Companies. These values will be used while creating Estimates and Work Orders.
The tax types available are Sales Tax and Value Added Tax.
Services And Products
While adding a Service or Product, you can choose one of the following values:
- Taxable
- Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Contacts
While adding a Contact, you can choose one of the following values:
- Taxable. Contact Tax should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason and Tax Authority should be selected if Non-Taxable is chosen.
Companies
While adding a Company, you can choose one of the following values:
- Taxable. A Company Tax should be selected if Taxable is chosen.
You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice. - Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.
Estimates and Work Orders
While creating an Estimate or Work Order, the value of the Tax Name field for Services/Products will be prefilled based on the value of the field Taxable for the Contact and Service/Product. Refer table below for details:
| IF the value of Taxable of the Contact is | AND the value of Taxable of Service/Product is | THEN the value of Tax Name of Service/Product will be |
| Taxable | Taxable | Contact Tax |
| Taxable | Non-Taxable | Exemption Reason of Service/Product |
| Non-Taxable | Taxable | Exemption Reason of the Contact |
| Non-Taxable | Non-Taxable | Exemption Reason of the Contact |
UK Edition
In this edition, the tax-related properties can be added for Services And Products, Contacts, and Companies. These values will be used while creating Estimates and Work Orders.
The tax types available are VAT and VAT MOSS. The VAT rates available are Standard Rate (20%), Reduced Rate (5%), and Zero Tax (0%). You can add new VAT rates at Settings > VAT > VAT Rates in Zoho Invoice.
Services And Products
While adding a Service or Product, you can assign a VAT rate (in Tax Name field).
Contacts
While adding a Contact, you can assign a value for VAT Treatment.
Companies
While adding a Company, you can assign a value for VAT Treatment.
Estimates and Work Orders
While creating an Estimate or Work Order, the value of the Tax Name field for Services/Products will be prefilled based on the value of the field VAT Treatment for the Contact. Refer table below for details:
| IF the value of VAT Treatment of the Contact is | THEN the value of Tax Name of Service/Product will be | Remarks |
| United Kingdom | VAT rate (Tax Name) of Services/Products | Value of Tax Name can be edited |
| EU - VAT Registered | Zero rate | Value of Tax Name can be edited |
| EU - non VAT Registered | VAT rate (Tax Name) of Services/Products | Value of Tax Name can be edited |
| Non European Union | - | Select a value for Tax Name |
Global Edition
All countries other than the ones mentioned below are supported under the global edition:
Australia, Canada, India, USA, UK, Bahrain, Kuwait, Mexico, Oman, Qatar, Saudi Arabia, and U.A.E.
In this edition, the tax-related properties can be added for Services And Products. These values will be used while creating Estimates and Work Orders.
Services And Products
While adding a Service or Product, you can select a tax rate.
Estimates and Work Orders
While creating an Estimate or Work Order, the value of the Tax Name field for Services/Products will be prefilled based on the value of the field Tax Name for Service/Product.
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