Tax Setting

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:
  1. Australia
  2. Canada
  3. India
  4. USA
  5. UK
  6. Global Edition
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:
  1. Navigate to Setup > Billing > Tax Setting.
  2. Click Create under Taxes tab.
  3. Enter the following details and click Save.
    1. Tax Name
    2. Rate
    3. 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.
  1. Log into your Invoice account
  2. Click the Gear [] icon on the top-right corner, and select Taxes.
  3. Select the Tax Exemptions menu and click New Tax Exemption.
  4. In the New Tax Exemption overlay, enter the following details and click Save.
    1. An Exemption Reason.
    2. Description of the reason.
    3. 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 ProductsContacts, 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:
  1. Taxable



  2. 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:
  1. Taxable. Contact Tax should be selected if Taxable is chosen.
    You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice.



  2. 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:
  1. Taxable. A Company Tax should be selected if Taxable is chosen.
    You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice.



  2. 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 ProductsContacts, 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:
  1. Taxable



  2. 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:
  1. Taxable. Contact Tax should be selected if Taxable is chosen.
    You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice.



  2. 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:
  1. Taxable. A Company Tax should be selected if Taxable is chosen.
    You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice.



  2. 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 ProductsContacts, 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:
  1. 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.



  2. Non-Taxable. An Exemption Reason should be selected if Non-Taxable is chosen.




Adding Tax Rates
  1. Log into your Books/Invoice account.
  2. Click the Gear [] icon on the top-right corner, and select Taxes.
  3. Select the Tax Rates menu and click New Tax.
  4. In the New Tax overlay, enter the following details and click Save.
    1. Tax Name and Rate(%)
    2. 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:
  1. Taxable



  2. 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:
  1. Taxable



  2. 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 
  1. GST Treatment of the Contact
  2. Place of Supply of the Work Order
  3. Taxable of the Contact
  4. 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 ProductsContacts, 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:
  1. Taxable



  2. 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:
  1. Taxable. Contact Tax should be selected if Taxable is chosen.
    You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice.



  2. 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:
  1. Taxable. A Company Tax should be selected if Taxable is chosen.
    You can add tax rates at Settings > Taxes > Tax Rates in Zoho Invoice.



  2. 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 ProductsContacts, 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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