## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/za/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# VAT in Transactions

In Zoho Books, you can create VAT-compliant sales and purchase transactions. Once you have enabled VAT, added customers, vendors, and items to your organization, you can create transactions that are up to VAT standards.

Let’s take a look at the VAT Rates that are applicable on the sales and purchase transactions.

Once you enable VAT for your organisation, the following VAT rates will be created automatically:

*   Standard Rate \[15%\]
*   Zero Rate \[0%\]
*   Exempt

VAT Treatment

Sales

Purchases

VAT Registered

Standard Rate, Zero Rate, Exempt

Standard Rate, Zero Rate, Exempt

Non-VAT Registered

Standard Rate, Zero Rate, Exempt

No Tax

Overseas

Zero Rate

For import goods: Bill of Entry  
  
For import services: Reverse Charge Mechanism  
  
  
Others: No Tax

## VAT in Sales Transactions

### VAT Registered

If you sell your goods or services to a VAT-registered customer who resides in South Africa, you can apply one of the following rates:

*   Standard Rate (15%)
*   Zero Rate (0%)
*   Exempt

### Non VAT Registered

Non VAT registered customers are those whose business location is in South Africa but are not VAT registered. For such customers, you can apply one of the following rates:

*   Standard Rate (15%)
*   Zero Rate (0%)
*   Exempt

### Overseas

Overseas is a type of VAT treatment applicable for customers who are outside South Africa. When you sell goods or services to such customers, you must apply the Zero Rate on them.

* * *

## VAT in Purchase Transactions

### VAT Registered

If you purchase goods or services from a vendor who is VAT-registered and is located in South Africa, you can apply one of the following rates:

*   Standard Rate (15%)
*   Zero Rate (0%)
*   Exempt

### Non-VAT Registered

If you purchase goods or services from a vendor whose business location is South Africa but is not VAT registered, then the supply of goods or services is not taxable.

### Overseas

If you import goods or services from a vendor who is outside of South Africa, you’ll have to create a bill of entry for the goods and apply reverse charge for the services.