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 > Tax Rates in Zoho Invoice/Zoho Books.

Add Taxes in Zoho FSM

Follow the steps below to add taxes in FSM:

Navigate to Setup > Billing > Tax Setting.
Click New Tax under Taxes tab.
Enter the following details and click Save.

Tax Name
Rate (%)
Tax Authority

You can edit or delete the taxes.

Add Taxes in Zoho Books/Invoice

Follow the steps below to add taxes in Books/Invoice:

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 consideration with Invoice/Books 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
Type I - Companies	Companies
Type II - Contacts	Contacts
Type III - Companies and Contacts	Companies
Type IV - Companies and Contacts (Companies not mandatory)	Contacts

In the USA edition, if Service Address has a tax associated, then the Service Address Tax will be considered.

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 Taxable field for the Contact (or Company, based on the sync type for the FSM-Invoice/Books integration) and Service/Product. When a Contact or Service/Part is added to Zoho FSM without the tax details, then the tax for the record will be considered as Not Available. Refer table below for details:

IF the Contact tax is	AND the Service/Product tax 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
Not Available	Taxable	Default tax from Books/Invoice	Value of Tax Name can be edited
Not Available	Non-Taxable	Exemption Reason of Service/Product	Value of Tax Name can be edited
Taxable	Not Available	Contact Tax	Value of Tax Name can be edited
Non-Taxable	Not Available	Contact Tax	Value of Tax Name can be edited

Canada Edition

In this edition, taxes for service and part line items will be determined by the Tax Rules in Zoho Books/Invoice. There are two types of tax rules:

System
User Defined

System Tax Rules

The following are the system tax rules:

Default Rate
Predefined tax rates for all states of Canada are defined here. It also specifies the default tax rate applicable to locations outside of Canada.
Exempt for Contacts
You can use this if you want to choose the tax rule as tax exempt for the Contacts, and Companies in Zoho FSM.
Exempt for Items
You can use this if you want to choose the tax rule as tax exempt for the Services And Parts in Zoho FSM.
Zero Rate
You can use this if you want to choose the tax rule as a zero tax rate for the Services And Parts in Zoho FSM.

User Defined Tax Rules

You can create user-defined rules for a Contact or Item. Contact-based rules can be used for Contacts, and Companies in Zoho FSM whereas Item-based rules can be used for Services And Parts.

Estimates and Work Orders

In an Estimate or Work Order, the value of the Tax Name field for Service/Part line item will be prefilled based on the value of the field Tax Rule for the Company (Contact, if Company not present) and Service/Part. Refer table below for details:

Company/Contact	Service/Part	Tax Rule Considered
Tax rule (Taxable) exists	- Tax rule (Taxable) exists with a State and Country ⁓State and Country of Service Address matches that of the tax rule of the Service. ⁓State and Country of Service Address does not match that of the tax rule of the Service. - No tax rule associated	The tax rule of the Company will be considered
Tax rule (Taxable) exists	Tax rule (Tax Exempt) exists	- The tax rule of the Company will be considered if the State and Country of the Service Address does not match that of the tax rule of the Service. - If the State and Country of the Service Address matches that of the tax rule of the Service, then Non-Taxable [0%] will be considered.
Tax rule (Tax Exempt) exists	- Tax rule (Taxable) exists with a State and Country - Tax rule (Tax Exempt) exists - Tax rule does not exist.	Non-Taxable [0%]
Tax rule does not exist.	Tax rule (Taxable) exists with a State and Country	- The tax rule of the Service will be considered if the State and Country of the Service Address matches that of the tax rule of the Service. - The Default Tax Rate of the Org will be considered if the State and Country of the Service Address do not match that of the tax rule of the Service. - If only a State (Canadian) or Canada is chosen, then the Org's default tax rate will be considered. The same is true if both the State and Country are not chosen. - If any State/Country outside Canada is chosen, then the tax rate of All Countries defined in the Default Tax Rule will be considered. If a tax rate is defined for All Countries in the Service/Part tax rule, then that tax rate will be considered.
Tax rule does not exist.	Tax rule (Tax Exempt) exists	- The Default Tax Rate of the State will be considered if the State and Country (Canada) of the Service Address do not match that of the tax rule of the Service. - Non-Taxable [0%] will be considered if the State and Country of the Service Address matches that of the tax rule of the Service. - If any State/Country outside Canada is chosen, then the tax rate of All Countries defined in the Default Tax Rate will be considered.
Tax rule does not exist.	Tax rule does not exist.	- If Canada and any of its States are chosen for the Service Address, then the State's default tax rate will be considered. - If only a State (Canadian) or Canada is chosen, then the Org's default tax rate will be considered. The same is true if both the State and Country are not chosen. - If any state/country outside Canada is chosen, then the tax rate of All Countries defined in the Default Tax Rate will be considered.

Germany Edition

In this edition, the tax-related properties can be added for Services And Parts, Contacts, and Companies. These values will be used in Estimates, Work Orders, and Service Appointments.

The tax type used is VAT.

There are three VAT settings in Zoho Books/Invoice that we will be making use of:

Is your business registered for VAT?
This is to enable VAT for your organization
Enable trade with contacts outside Germany
If you are doing business outside Germany, this option can be used for handling your imports and exports
My business is registered for VAT MOSS or OSS
If you enable the VAT MOSS or OSS scheme, VAT Rules will be enabled for your organization to help you create VAT rates for different EU member countries and apply those VAT rates on the respective transactions automatically.

VAT Enabled

This section details how VAT will be handled when only the setting Is your business registered for VAT? is enabled.

Services And Parts

While adding a Service or Part, you can select a VAT rate. These are the VAT rates that are defined in Zoho Books/Invoice at Settings > Taxes & Compliance > Taxes > VAT Rates. The available values will be:

Standard Rate
Reduced Rate
Zero Rate

Any user defined VAT rates added will also be listed.

Contacts/Companies

While adding a Contact/Company, you can provide a VAT Registration Number.

Transactions

In Estimates, Work Orders, and Service Appointments, the value of the Tax Name field for Services/Parts line item will be prefilled based on the value of the Tax Name of Service/Part.

Trade Outside Germany

This section details how VAT will be handled when the settings Is your business registered for VAT? and Enable trade with contacts outside Germany are enabled.

Services And Parts

Standard Rate
Reduced Rate
Zero Rate

Any user defined VAT rates added will also be listed.

Contacts/Companies

While adding a Contact/Company, you need to select a VAT Treatment. The different kinds of VAT treatments are: Home Country, EU - VAT Registered, EU - Non VAT Registered, and Overseas

Transactions

In Estimates, Work Orders, and Service Appointments, the value of the Tax Name field for Services/Parts line item will be prefilled based on the value of the fields:

VAT Treatment of the Contact (or Company, based on the sync type for the FSM-Invoice/Books integration)
Tax Name of the Service/Part

Refer to the table below for details:

IF the value of VAT Treatment* of the Contact is*	AND the value of Tax Name* of Service/Part is*	THEN the value of Tax Name* of Service/Part line item will be*
Home Country	Standard Rate Reduced Rate Zero Rate	Standard Rate Reduced Rate Zero Rate
Home Country	Custom Rate	Custom Rate
EU - VAT Registered	Standard Rate Reduced Rate Zero Rate	Zero Rate
EU - VAT Registered	Custom Rate	Zero Rate
EU - Non VAT Registered	Standard Rate Reduced Rate Zero Rate	Standard Rate
EU - Non VAT Registered	Custom Rate	Standard Rate
Overseas	Standard Rate Reduced Rate Zero Rate	Zero Rate
Overseas	Custom Rate	Zero Rate

VAT according to MOSS or OSS scheme

This section details how VAT will be handled when the settings Is your business registered for VAT?, Enable trade with contacts outside Germany, and My business is registered for VAT MOSS or OSS are enabled.

Services And Parts

While adding a Service or Part, you can select a Tax Rule. These are the tax rules that are defined in Zoho Books/Invoice at Settings > Taxes & Compliance > VAT > VAT Rules. The tax associated with each of the tax rules is mentioned in the table below.

Tax Rule	Tax Name
	Germany	EU Countries	All Countries
Standard Rate - Sales	Standard Rate [19%]	Standard Rate [19%]	Zero Rate [0%]
Reduced Rate - Sales	Reduced Rate [7%]	Reduced Rate [7%]	Zero Rate [0%]
Zero Rate - Sales	Zero Rate [0%]	Zero Rate [0%]	Zero Rate [0%]

Any user defined tax rules added will also be listed here.

Contacts/Companies

While adding a Contact/Company, you need to select a VAT Treatment. The different kinds of VAT treatments are: Home Country, EU - VAT Registered, EU - Non VAT Registered, and Overseas.

If EU - Non VAT Registered is selected, then you can select the Place of Supply.

Transactions

In Estimates, Work Orders, and Service Appointments, the value of the Tax Name field for Services/Parts line item will be prefilled based on the value of the fields:

VAT Treatment of the Contact (or Company, based on the sync type for the FSM-Invoice/Books integration)
Tax Rule of the Service/Part

Refer to the table below for details:

IF the value of VAT Treatment* of the Contact is*	AND the value of Tax Rule* of Service/Part is*	THEN the value of Tax Name* of Service/Part line item will be*	Remarks
Home Country	Standard Rate - Sales Reduced Rate - Sales Zero Rate - Sales	VAT defined for Germany in these tax rules
	User Defined Rule	VAT defined for Germany in the user defined rule	If a VAT rate is not defined for Germany, then that defined for EU Countries or All Countries will be used
	No Rule	VAT defined for Germany in the Default VAT Rule	If a VAT rate is not defined for Germany, then that defined for EU Countries or All Countries will be used
EU - VAT Registered	Standard Rate - Sales Reduced Rate - Sales Zero Rate - Sales	Zero Rate
	User Defined Rule	Zero Rate
	No Rule	Zero Rate
EU - Non VAT Registered Place of Supply is selected	Standard Rate - Sales Reduced Rate - Sales Zero Rate - Sales	VAT defined for EU Countries in these tax rules
	User Defined Rule	VAT defined for the Place of Supply in the user defined VAT rule	If a VAT rate is not defined for the Place of Supply, then that defined for EU Countries or All Countries will be used
	No Rule	VAT defined for the Place of Supply in the Default VAT Rule	If a VAT rate is not defined for the Place of Supply, then that defined for EU Countries or All Countries will be used
EU - Non VAT Registered Place of Supply not selected	Standard Rate - Sales Reduced Rate - Sales Zero Rate - Sales	VAT defined for EU Countries in these tax rules
	User Defined Rule	VAT defined for EU Countries or All Countries in the User Defined Rule
	No Rule	VAT defined for EU Countries or All Countries in the Default VAT Rule
Overseas	Standard Rate - Sales Reduced Rate - Sales Zero Rate - Sales	Zero Rate
	User Defined Rule	Zero Rate
	No Rule	Zero Rate

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.