--- title: How to Set Up Taxes and Withholding Tax Rates Through Basic Settings description: How to Set Up Taxes Through Basic Settings Tax Removal Automated How to Set the Default Taxes for the Suppliers Enable the tax module in the Configuration → Basic Settings → Documents Setup → General --- [Skip to content](https://help.precoro.com/how-to-set-up-tax-rates#main-content) [Contact us](https://help.precoro.com/kb-tickets/new?hsLang=en) [Customer portal](https://help.precoro.com/tickets-view?hsLang=en) [![Property 1=Default](https://help.precoro.com/hubfs/Property%201=Default.svg)](https://app.precoro.com/login) Open main navigation Close main navigation - [Contact us](https://help.precoro.com/kb-tickets/new) - [Customer portal](https://help.precoro.com/tickets-view) - [Contact Us](https://share.hsforms.com/1-5JilMA_Qv6AOSVjFtNhDg14slf) [Contact Us](https://share.hsforms.com/1-5JilMA_Qv6AOSVjFtNhDg14slf) Hi there! How can we help you today? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.precoro.com/?hsLang=en) 2. [Precoro Setup](https://help.precoro.com/precoro-setup?hsLang=en) 3. [Configurations](https://help.precoro.com/precoro-setup?hsLang=en#configurations) # How to Set Up Taxes and Withholding Tax Rates Through Basic Settings ## Learn how to set up and manage taxes in Precoro for your documents and suppliers. #### TABLE OF CONTENTS - [How to Set Up Taxes Through Basic Settings](https://help.precoro.com/how-to-set-up-tax-rates#How-to-Set-Up-Taxes-Through-Basic-Settings) - [Step 1. Enable the Tax Module](https://help.precoro.com/how-to-set-up-tax-rates#Step1) - [Step 2. Create the Necessary Taxes](https://help.precoro.com/how-to-set-up-tax-rates#Step2) - [Applying Taxes to the Purchase Order and Invoice Documents](https://help.precoro.com/how-to-set-up-tax-rates#Applying-Taxes) - [Tax Removal](https://help.precoro.com/how-to-set-up-tax-rates#Tax-Removal) - [Automated](https://help.precoro.com/how-to-set-up-tax-rates#Automated) - [Manual](https://help.precoro.com/how-to-set-up-tax-rates#Manual) - [Making Taxes Required](https://help.precoro.com/how-to-set-up-tax-rates#Required) - [How to Set the Default Taxes for the Suppliers](https://help.precoro.com/how-to-set-up-tax-rates#Default-Taxes) - [Integrating Tax Rates with QuickBooks or NetSuite](https://help.precoro.com/how-to-set-up-tax-rates#Integrating-Tax-Rates) ### How to Set Up Taxes Through Basic Settings #### Step 1. Enable the Tax Module Enable the tax module in the **Configuration → Basic Settings → Documents Setup → General Settings** tab by checking the **Taxes** box and clicking **Save**: ![](https://help.precoro.com/hubfs/Monosnap%20screencast%202023-07-10%2013-56-06-gif.gif) ### Step 2. Create the Necessary Taxes Select and add the type of tax that best suits your company’s needs. In Precoro, you can set up two types of tax rates: - **General tax** applies to the Net Total as a percentage. The Gross Total is calculated as a sum of the Net Total and Tax Amount. Press the **Add Tax** button, then enter the **Name** and the necessary **Tax %**: [![](https://help.precoro.com/hubfs/Monosnap%20screencast%202022-10-31%2021-56-42-gif.gif)](https://help.precoro.com/hubfs/Monosnap%20screencast%202022-10-31%2021-56-42-gif.gif?hsLang=en) - **Withholding tax** iscalculated as a percentage of the Net Total or Gross Total or a certain Tax amount. The company withholds this tax from the total Invoice amount that should be paid. In that case, the Gross Total for the Invoices calculates as the sum of the Net Total and general Tax amount, and the amount that should be paid to the supplier is the Gross Total minus the Withholding Tax amount. Press the **Add Tax** button, then tick the **Withholding Tax** (WHT) and select the **Base Amount** (from which type of amount you want the interest to be calculated). Also, enter the **Name** and the necessary **Tax %** There is no limit to how many taxes can be added.  [![](https://help.precoro.com/hubfs/Monosnap%20screencast%202022-10-31%2022-07-12-gif.gif)](https://help.precoro.com/hubfs/Monosnap%20screencast%202022-10-31%2022-07-12-gif.gif?hsLang=en) As an alternative to creating Taxes in Configuration, you can use the [Tax Item Type](https://help.precoro.com/tax-item-type?hsLang=en) functionality. ### Applying Taxes to the Purchase Order and Invoice Documents You can apply either type of created tax: - At the stage of PO or Invoice document creation. This way, Taxes will be applied to the whole document. - When editing the PO or Invoice documents in the **Draft** stage. This way, Taxes will be applied to the whole document. [![](https://help.precoro.com/hubfs/Monosnap%20screencast%202022-10-31%2022-27-20-gif.gif)](https://help.precoro.com/hubfs/Monosnap%20screencast%202022-10-31%2022-27-20-gif.gif?hsLang=en) - When adding items on the document creation stage or when editing items by taking the document under **Revision** in the PO or Invoice documents. This way, Taxes will be applied to the particular item line, and you can have different tax rates for each item line if needed. **Important information to consider:** - Tax rates will be copied to the new document from the previous one in the following cases: 1. When creating an Invoice from the Purchase Order. 2. When copying or recurring the Purchase Order or Invoice. - When **adding** a new tax rate to the Invoice, all tax rates will be copied from the Invoice to the Purchase Order during *Matching*. ### Tax Removal #### Automated When you have deleted a Tax from the last item line, so no other items in your document include them, the Tax will be automatically removed from the document body. 💡 **Please note:** This function works for the **Purchase** **Order**, **Invoice**, and **Expense** documents. #### Manual You can delete added Taxes from the whole document by clicking the delete icon next to the % amount: ![](https://help.precoro.com/hs-fs/hubfs/Monosnap%20Purchase%20Order%20%231%202023-08-15%2010-04-02-png.png?width=521&height=383&name=Monosnap%20Purchase%20Order%20%231%202023-08-15%2010-04-02-png.png) Or you can remove the added tax from the item line: 1\. Click the edit button on the necessary item line. 2\. Click the delete icon next to the Tax to remove it. 3\. Save the edited item. ### Making Taxes Required To make the Tax field required, follow these steps: 1\. Open the **Configuration** → **Basic Settings** → **Documents Setup → General Settings** and activate the **Taxes** checkbox. 2\. Activate the **Required Taxes for Items** checkbox. Please note that it becomes available only after the **Taxes** checkbox activation. Afterward, press **Save**.  ![](https://help.precoro.com/hubfs/Monosnap%20screencast%202023-07-10%2013-59-11-gif.gif) After enabling this feature, the **Tax** field becomes required in all three following documents: - Purchase Order - Invoice - Expense. 💡 **Please note:** After enabling those checkboxes, Taxes become required for all three documents. Users will only be able to save new documents if they have added the Tax either on the **document** or **item** level. - If you had documents where Taxes were not required, when taking them for revision, the Taxes will become required. - If you already had documents where Taxes were required, when you turn off the **Required Taxes for Items** and take those documents for revision, the Taxes will still be required. ### How to Set the Default Taxes for the Suppliers You can set a **Default Tax** on the Supplier creation and edit pages. And when the users create Invoices or Purchase Orders with those Suppliers, the taxes will be automatically added to those documents. 💡 **Please note:** The users can only set the default taxes with the **Admin Role** in the User Managementtab. **To set the default Taxes, follow the steps below:** 1\. Open the Supplier Management section, click Add Supplier, or use **Edit Action** to revise the one you already have. 2\. In the Supplier document, scroll down and click the **Show default options** button. Then, in the **Tax options** field, select the previously created taxes from the drop-down list. 💡 **Please note:** You can assign multiple taxes to a single supplier. Learn more about working with taxes [here](https://help.precoro.com/how-to-set-up-tax-rates). 3\. Create a Purchase Order or Invoice document adding the Supplier with set default taxes. Pay attention that supplier default taxes are checked first when recognizing tax rates at the item level for [AI-scanned Expenses and POs.](https://help.precoro.com/using-ai-document-scanning?hsLang=en) ### Integrating Tax Rates with QuickBooks or NetSuite - Read [this article](https://help.precoro.com/establishing-integration-with-quickbooks-online?hsLang=en) to help you establish Tax integration with **QuickBooks**. 💡 **Please note:** The **Withholding Tax** rates are not yet integrated with QuickBooks. - To integrate Taxes with **NetSuite,** please follow [these guidelines](https://help.precoro.com/how-to-integrate-withholding-taxes-with-netsuite?hsLang=en). - [Precoro Setup](https://help.precoro.com/precoro-setup?hsLang=en#main-content) - [Configurations](https://help.precoro.com/precoro-setup?hsLang=en#configurations) - [User Management](https://help.precoro.com/precoro-setup?hsLang=en#user-management) - [Custom Fields and Forms](https://help.precoro.com/precoro-setup?hsLang=en#custom-fields-and-forms) - 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