# Tax settings

> Enable tax, choose tax-inclusive or exclusive pricing, manage tax rates and the default rate, and understand reverse charge and the tax accounts.

Canonical: https://docs.getonebooks.com/tax/settings/
Language: en
Documentation index: https://docs.getonebooks.com/llms.txt

**Settings → Tax Settings** controls how VAT, GST or sales tax is calculated on every document line. The defaults come from your country; change them only if your registration differs.

![The Tax settings page with Enable Tax, Tax Inclusive Pricing, Default Tax and the tax rates table](https://docs.getonebooks.com/screenshots/en/settings-tax.webp)

## Enable tax

Switch **Enable Tax** off only if the business is not registered for tax. With it off, documents carry no tax lines and the tax reports stay empty.

## Tax-inclusive or tax-exclusive pricing

- **Tax Inclusive Pricing on** — the prices you type on items and lines already contain tax; OneBooks extracts the tax for the totals and the ledger. Typical for retail in the UAE and the UK.
- **Off** — tax is added on top of the price you type. Typical for B2B, Saudi Arabia and India.

The setting applies to new documents; existing documents keep the mode they were created with.

![The Tax Configuration card with the Tax Inclusive Pricing switch](https://docs.getonebooks.com/screenshots/en/settings-tax-inclusive.webp)

## Tax rates

1. Under **Tax Rates**, select **Add Tax**.
2. Enter a **name** (for example "Reduced VAT") and the **rate (%)**. Use 0 for zero-rated supplies so the sale still appears on the tax report.
3. Select **Save**. Use **Set as default** on the rate that new items and lines should get.

![The Add Tax Rate dialog with name and rate fields](https://docs.getonebooks.com/screenshots/en/settings-tax-rates-new.webp)

The default rate cannot be deleted; make another rate the default first. Rates in use on documents stay valid on those documents after you edit or delete them.

## Tax on documents

Each line on an invoice, quote, purchase or return carries its own rate, picked from your list or inherited from the item. See [Invoices](https://docs.getonebooks.com/sales/invoices/) and [Prices, units and tax defaults](https://docs.getonebooks.com/items/pricing-tax/).

![The tax rate picker on a document line](https://docs.getonebooks.com/screenshots/en/sales-invoice-new-tax.webp)

## Reverse charge

Some supplies are taxed by the **customer** rather than the seller — imported services, certain B2B cross-border supplies, and reverse-charge categories under GST. Switch **Reverse charge** on the document:

- On a **sales invoice**, no tax is charged and the invoice states that the customer accounts for the tax.
- On a **purchase**, you self-assess: the tax is recorded as both input and output, so it appears on both sides of your return.

The switch is only available while the document is a draft.

## The tax accounts

| Account | Holds |
|---|---|
| **2100 VAT Payable** | Output tax collected on sales. |
| **1300 VAT Receivable** | Input tax paid on purchases. |
| **2110 RCM VAT Payable** | Self-assessed reverse-charge tax on purchases. |

The names say "VAT" but the same three accounts serve GST and sales tax. The [tax report](https://docs.getonebooks.com/reports/tax-reports/) reconciles to their balances.

## Related

  - [Tax report and tax summary](https://docs.getonebooks.com/reports/tax-reports/)
  - [Choose your country](https://docs.getonebooks.com/getting-started/choose-country/)