{"id":150694,"date":"2026-10-04T10:56:56","date_gmt":"2026-10-04T10:56:56","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d8%a3%d9%86%d9%88%d8%a7%d8%b9-%d8%a7%d9%84%d8%b6%d8%b1%d8%a7%d8%a6%d8%a8-%d9%81%d9%8a-%d8%af%d9%81%d8%aa%d8%b1%d8%a9-%d9%85%d8%b9%d9%86%d9%89-%d8%a7%d9%84%d8%b6%d8%b1%d9%8a%d8%a8%d8%a9-%d8%a7%d9%84\/"},"modified":"2026-10-15T07:28:08","modified_gmt":"2026-10-15T07:28:08","slug":"tax-types-in-the-system","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/tax-types-in-the-system\/","title":{"rendered":"Tax Types in the System: Exempt, Zero-Rated, and Others \u2014 Setup, Calculation, Entries, and Reports"},"content":{"rendered":"
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First: The Meaning of the “Exempt” Tax in the System<\/h2>\n

In some accounts, a tax named Exempt<\/strong> appears in the taxes list, and next to it may appear the VAT<\/strong> and Zero-Rated<\/strong> taxes. These taxes are not special types in the system, but are default taxes<\/strong> that the system adds automatically when the account is created according to the chosen country.<\/p>\n

The exempt tax is considered a tax with a rate of zero percent<\/strong>, used to show that the product or service is exempt from tax, without producing any tax amount on the invoice. Its behavior in the system is determined by only two things: the tax value<\/strong>, and whether it is inclusive<\/strong> or exclusive<\/strong> in the price.<\/p>\n

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Note:<\/strong> The system doesn’t distinguish between the “exempt” tax and the “zero-rated” tax in terms of calculation or entries, since both have a rate of zero. The difference between them is limited to the e-invoice, where the classification (exempt, subject to the zero rate, or outside the scope of tax) is determined through the tax linking settings with the tax authority, as explained later in this guide.<\/p>\n<\/div>\n

Second: Tax Setup<\/h2>\n

Taxes are managed from the Tax Settings<\/strong><\/a> page, and this requires having the permission to manage taxes. Each tax consists of the following fields:<\/p>\n\n\n\n\n\n\n
Field<\/th>\nDescription<\/th>\n<\/tr>\n
Tax<\/strong><\/td>\nThe tax name as it appears in invoices and reports.<\/td>\n<\/tr>\n
Tax Value<\/strong><\/td>\nThe percentage. A negative value may be entered for exclusive taxes only (such as withholding tax).<\/td>\n<\/tr>\n
Inclusive<\/strong><\/td>\nInclusive<\/strong>: the entered price includes the tax. Exclusive<\/strong>: the tax is added to the price.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

To add a new tax, click Add<\/strong>, then enter the data, then click Save<\/strong>, and the message Tax settings updated<\/strong> appears.<\/p>\n

Default Taxes<\/h3>\n