## 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 Settings

This section will give you a brief overview about how you can configure VAT in Zoho Books.

## Configure VAT in Zoho Books

To set up VAT rates in Zoho Books, you should enable it in your organization. Here’s how:

### Enable VAT Settings

To enable VAT settings for your organization in Zoho Books:

*   Go to _Settings_ in the top right corner of the page.
    
*   Navigate to _Taxes & Compliance_ and click **VAT**.
    
*   Slide the toggle next to _Is your business registered for VAT?_
    
*   Enter the _VAT Registration Number_.
    
*   Check the _Enable trade with contacts outside South Africa_ box if your business involves International trade.
    
*   Enter the _VAT Registered On_ date.
    
*   Enter the _Generate First Tax Return From_ date. Only the transactions created on or after this date will be included in the return.
    
*   Click **Save**.
    
    ![VAT Settings](/za/books/help/images/vat/vat-enable.png)

### VAT Rates

Once VAT is enabled, the following tax rates will be added to your organization and will be automatically applied to future transactions:

*   **Standard Rate \[15%\]** - Most of the goods and services that are included in transactions after April, 2018 fall under this tax rate.
*   **Zero Rate \[0%\]** - A tax rate of 0% is applied on goods that are agricultural supplies, residential lettings. Services that include road and rail transport, financial services, money lending, retirement and medical benefits, and international support are zero-rated.
*   **Exempt** - Tax exempt is provided in the following cases:
    *   Non-fee related financial services
    *   Educational services provided by an approved educational institution
    *   Residential rental accommodation
    *   Road and rail public passenger transport
*   **Old Standard Rate \[14%\]** - Most of the goods and services that are included in transactions before April, 2018 fall under this tax rate.
*   **Change in use (Non-taxable supplies) \[15%\]** - Purchasing a good for business, intending for making taxable supplies and later using it for personal use.
*   **Change in use (Taxable supplies) \[15%\]** - Purchasing a good for personal use and later using it for taxable supplies.
*   **Export of second-hand goods** - Purchasing a second-hand good and exporting it later.
*   **Supply of accommodation exceeding 28 days \[15%\]** - When accommodation is provided for more than 28 days, the VAT will be calculated only for 60% of the total cost.
*   **Supply of accommodation not exceeding 28 days \[15%\]** - When accommodation is provided for 28 or less than 28 days, the VAT will be calculated for the total cost.

### Add VAT

You can add the old standard rate \[14%\] by creating a new one. Here’s how:

![Add VAT](/za/books/help/images/vat/vat-add.png)

*   Click **\+ New VAT.**
*   Enter the _Tax Name_ and _Rate_.
*   Associate a _Tax Type_ from the dropdown.
*   Click **Save**.

The new tax rate will be created.

### Edit VAT

You can only edit the VAT that you have created. Changes cannot be made to the default VAT rates.

To edit a VAT rate:

*   Hover over and click the **down arrow** next to the tax rate you’ve created.
    
*   Select **Edit** and make the required changes.
    
*   Click **Save**.
    
    ![Edit VAT](/za/books/help/images/vat/vat-edit.png)

### Delete VAT

To delete a VAT rate:

*   Hover over and click the **down arrow** next to the tax rate you’ve created.
    
*   Select **Delete** from the dropdown.
    
    ![Delete VAT](/za/books/help/images/vat/vat-delete.png)

The VAT rate will be deleted.

### Mark VAT as Inactive

The default taxes that you don’t want to use can be marked as inactive. To do this:

*   Hover over a default tax rate and click the **down arrow** next to it.
    
*   Select **Mark as Inactive** from the dropdown.
    
    ![Mark as Inactive](/za/books/help/images/vat/mark-as-inactive.png)

The VAT rate will be marked as inactive.