## Zoho Invoice — Product, features, payments, integrations, solutions, and help Index Access the complete documentation index at: https://www.zoho.com/en-sg/invoice/llms.txt Use this file to discover all available documentation pages before proceeding. # Taxes - Overview In Singapore, GST (Goods and Services Tax) applies to most goods and services at different rates. These include the standard GST rates of 9% and 8%, a zero-rated GST of 0%, and tax-exempt supplies. To apply GST correctly, each item is assigned a tax category, which links it to the right tax code and GST rate. When you add the item to a transaction, the GST rate is applied automatically based on the item’s tax category and the customer’s billing address. This ensures the correct GST treatment for both local and overseas sales. ## Enable Taxes If you didn’t enable GST when setting up Zoho Invoice, you can enable it later. To do this: * Log in to your _Zoho Invoice_ organisation. * Go to _Settings_ and select **Taxes**. * Hover over **Is your business registered for GST?** and slide the toggle to **Yes**. * Enter your 10-digit GST number. * Click **Save**. Taxes will now be enabled for your organisation. ## Tax Rates ### Default Tax Rates In Zoho Invoice, the following GST rates are available by default for Singapore. These default tax rates cannot be deleted or marked as inactive. The available tax rates are listed below: Tax Name Code Tax Percentage Description GST 0 ZP 0 Used for purchases with 0% GST. GST 0 ZR 0 Used for sales with 0% GST. GST 8 SR8 8 Used for sales with 8% GST. GST 8 TX-8 8 Used for purchases with 8% GST. GST 8 TXCA-8 8 Used when buying prescribed goods with 8% GST (Customer Accounting Applies) GST 8 TXRC-TS-8 8 Used for imported services and LVG directly linked to taxable sales at 8% GST. GST 9 BL 9 Used for expenses where GST is not claimable. GST 9 IM 9 Used for importing goods with 9% GST. GST 9 SRCA - S 9 Used when the supplier does customer accounting. GST 9 SR 9 Used for standard-rated sales at 9% GST. GST 9 TXCA 9 Standard-rated p GST 9 TXRC-TS 9 Used for imported services and LVG directly linked to taxable sales at 9% GST. GST 9 TX 9 Used for standard-rated supplies at 9% GST. **Insight:** * In Singapore, local customers pay a **9%** tax on Default Product, Electronics, Hardware, Telecommunication Services, and Professional Services. * Financial Services and import/local supply of **Investment Precious Metals (IPM)** are **Tax-Exempt**. * In Malaysia, overseas customer exports for all tax categories have a **0%** tax rate. * For Singapore-registered customers buying **Prescribed Goods (Blackberry, Memory Stick, Tablets, Smartphones)** with a sale value over **$10,000**, apply a **9%** tax under **Customer Accounting**. ### Create a New Tax Rate To create a new tax rate: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **Tax Rates**. * Click **\+ New Tax** in the top right corner. * In the _New Tax_ page, complete the following fields: * **Tax Name:** Enter the tax name. * **Rate(%):** Enter the tax percentage. * **This tax is a compound tax:** Mark this if there’s an additional tax on top of this one. * Click **Save**. The new tax will now be created. ### Create Tax Rates in Bulk To create tax rates in bulk: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **Tax Rates**. * Click the **\+ New Tax** dropdown, and select **Create Taxes in Bulk**. * In the _Create Taxes in Bulk page_, enter the tax names and rates. Click **\+ Add Tax** to add more tax rates. * Mark **This tax is a compound tax** if the taxes have additional taxes applied on top. * Click **Save**. The tax rates you’ve configured will now be created in bulk. ## Taxes Operations ### Edit a Tax Rate **Note:** You cannot edit the default tax rates. To edit a tax rate: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, click **Tax Rates**. * Hover over the tax rate, click the dropdown to the right, and choose **Edit**. * In the _Edit Tax_ page, make the required changes. * Click **Save**. The tax rate will be updated with your changes. ### View Details of a Tax Rate **Note:** You can only view the details of the default tax rates. To view details of a tax rate: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, click **Tax Rates**. * Hover over the default tax rate, click the dropdown on the right, and choose **View**. You’ll now see the details of that tax rate. ### View Associated Records of a Tax Rate **Note:** You can only view the associated records for the tax rates you created manually. To view the associated transactions of a tax rate: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, click **Tax Rates**. * Hover over the tax rate, click the dropdown on the right, and choose **View Associated Records**. In the Associated Records panel on the right, you’ll view all transactions listed under the Sales and Purchases dropdown. ### Mark a Tax Rate as Inactive **Prerequisite:** * Default tax rates cannot be marked as inactive. * A tax rate cannot be marked as inactive if it’s been used in any transaction. To mark it as inactive, first disassociate it from the transaction. To mark a tax rate as inactive: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **Tax Rates**. * Hover over the tax rate, click the dropdown to the right, and choose **Mark as Inactive**. The tax rate will now be marked as inactive. ### Mark a Tax Rate as Active To mark an inactive tax rate as active: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **Tax Rates**. * Hover over the inactive tax rate, click the dropdown to the right, and choose **Mark as Active**. The inactive tax rate will now be marked as active. ### Delete a Tax Rate **Prerequisite:** * Default tax rates cannot be deleted. * A tax rate cannot be deleted if it’s been used in any transaction. To delete the tax rate, first disassociate it from the transaction. To delete a tax rate: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **Tax Rates**. * Hover over the tax rate, click the dropdown to the right, and choose **Delete**. * In the following popup, click **OK** to confirm deletion. The tax rate will now be deleted. ## Enable Taxes for Your Customer Once you’ve enabled GST for your organisation, you can enable it for your customers to apply GST to their transactions. To do this: * Go to **Customers**. * Click **\+ New** in the top right corner to create a new customer, or select an existing customer and click **Edit** on the _Customer Details_ page. * Navigate to the _Other Details_ tab. * Mark **This customer has a GST registered business** next to _GST Registration_ and enter the customer’s GST registration number. * Navigate to the _Address_ tab. * Select the customer’s country in the **Country/Region** field under _Billing Address_. * Click **Save**. Taxes will now be enabled for the customer. When you now create a transaction for the customer, the tax rates will automatically apply based on each item’s category. ## Modify GST Settings **Prerequisite:** You cannot edit the settings if tax returns have already been generated. To make changes, delete the existing returns first. After setting up GST for your organization, you can update the settings as needed. To modify GST settings : * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **GST Settings**. * Under _Is your business registered for GST?_, make the necessary changes. * Click **Save**. Your organization’s GST details will be updated with the new information. **Insight:** Taxes on sales transactions are automatically calculated using the customer’s address and item categories, so there’s no need to select tax rates manually. ## Tax Automation Settings You can set up tax automation address preferences for your sales transactions in Zoho Invoice. To do this: * Go to _Settings_ and select **Taxes**. * In the _Taxes_ pane, choose **Tax Automation Settings**. * Under _Tax Automation Address Preference for Sales Transactions_, choose one of the following: * **Billing Address:** Use your customer’s billing address to apply tax to the sales transaction. * **Shipping Address:** Use your customer’s shipping address to apply tax to the sales transaction. * Click **Save**. The tax will now be applied to your customer’s sales transactions based on the address you selected. ### Disable Taxes **Note:** You cannot disable taxes if tax returns have been generated. Delete the existing returns before you disable taxes. To disable taxes: * Go to _Settings_ and select **Taxes**. * Click **GST Settings** on the left sidebar. * Hover over **Is your business registered for GST?** and slide the toggle to **No**. * Click **Save**. Taxes will now be disabled for your organisation.