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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.
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