## Zoho Inventory Documentation Index

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

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

# Taxes

Your business financials are affected by regulatory taxes and every organization has different taxes specific to country and channel to adhere to. You can add and manage your **Taxes** under the **Settings** module.

In this section, we are going to learn about the **Taxes** for the **Global & Indian edition**. The tax module is unique to each of our country specific editions and hence will have its differences.

If you’re using any other edition, please refer to the appropriate help document:

*   [US Sales Tax](/ke/inventory/help/sales-tax/sales-tax.html) and [Avalara Integration](/ke/inventory/help/integrations/avalara-integration.html).
*   [UK VAT](/ke/inventory/help/uk-vat/vat.html)
*   [Canada GST, PST & HST](/ke/inventory/help/canada-gst/canada-gst.html)
*   [Australia GST](/ke/inventory/help/australia-tax/australia-gst.html)
*   [India GST](/ke/inventory/help/gst/index.html)
*   [UAE & KSA VAT](/ke/inventory/help/vat/index.html)

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### Adding New Taxes

To create or add a new Tax follow steps as below:

*   Click the **Gear** icon in the top right corner.
*   Select **Taxes** under _Taxes & Compliance_ in _Organization Settings_.
*   To add a new tax, click on the **\+ New Tax** button.
*   Provide a **Tax Name**.
*   Enter the relevant **Rate** in %.
*   Define if the tax has to be charged at compound rate.
*   Click on the **Save** button to finish recording the tax.

![Adding new tax screen shot](/inventory/help/images/settings/tax-add.png)

##### Additional Info:

What is a Compound Tax?

> In some countries you might have to collect more than one tax from your customers. It is for you to pay to your local province and another to the federal authority. In certain cases, the provincial tax is applied on the total that includes the item or invoice amount as well as the federal tax amount. Such taxes are called as **Compound Taxes**.

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### Adding New Tax Groups

It is customary in some countries to club some taxes under a common head. In such cases you will have to create Tax Group which will fulfill this regulatory requirement.

To create a Tax Group:

*   Click the **Gear** icon in the top right corner.
*   Select **Taxes** under _Taxes & Compliance_ in _Organization Settings_.
*   Click on the dropdown near the **\+ New Tax** button, and select **\+ New Tax Group**.
*   Provide a **Tax Group Name**.
*   Select the taxes to be clubbed together by enabling the check sign on the boxes next to the desired taxes.
*   Click on the **Save** button to add the tax group.

![Edit tax button](/inventory/help/images/settings/tax-add-group.png)

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### Editing a tax

To edit an existing Tax follow steps as below:

*   Click the **Settings** in the top right corner.
*   Select **Taxes** from the dropdown.
*   Hover your cursor over the desired tax.
*   In the Edit Tax screen, edit the desired fields such as tax name and rate.​
*   If you make any changes to the tax rate, you will be able to have the new tax rate reflected across all your draft sales orders and invoices by checking the concerned options.
*   Click to **Save** the edited Tax.

![Screenshot for editing a tax](/inventory/help/images/settings/tax-edit.png)

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### Deleting a tax

To delete an existing tax follow steps as below:

*   Click the **Gear** icon in the top right corner.
*   Select **Taxes** under _Taxes & Compliance_ in _Organization Settings_.
*   Hover over the desired tax rate.
*   Click the **Dropdown** and select **Delete**.
*   A confirmation pop-up screen will double check your intention.
*   Click **OK** to delete or **Cancel** to skip.

![Screen shot for Deleting a Tax](/inventory/help/images/settings/tax-delete.png)

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### Applying tax on items

You have the ability to associate taxes to items during it’s creation or later by editing an item. These taxes will automatically be applied when you add the item to a transaction.

![New Item page top](/inventory/help/images/items/item-inventory-1.png)

On associating a tax to an item group, this tax will be applied to all the items in the group.

![New item group page](/inventory/help/images/items/new-item-group.png)

Learn more about [creating items and item groups here](/ke/inventory/help/items/items-overview.html#create-item).

**Note:** You can also change the tax associated to an item from within a transaction.

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