## Zoho Inventory Documentation Index

Access the complete documentation index at:
https://www.zoho.com/inventory/llms.txt

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

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# How to add tax exemptions?

You can create new tax exemptions for customers and items. E.g. Child care and non-profit organizations are exempt from taxes.

*   Click the **gear icon** on the top right and select the **Taxes** option.
*   Click the drop down arrow just next to the **\+ New Tax** button and select the **New Tax Exemption** option.
*   Enter **Exemption Reason** and **Description**. Choose the required type (customer or item) and click **Save**.

![Create a new tax exemption](/inventory/help/images/sales-tax/sales-tax-exemption.png)

Now you can apply tax exemptions to your items, contacts or transactions as you need.