# Creating a New Tax Rate

> Source: https://help.getedara.com/en/articles/9379951-creating-a-new-tax-rate · Category: Accounting › Taxes · Last updated: 2026-05-04 · العربية: https://help.getedara.com/ar/articles/9379951-%D8%A5%D9%86%D8%B4%D8%A7%D8%A1-%D9%86%D8%B3%D8%A8%D8%A9-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D8%AC%D8%AF%D9%8A%D8%AF%D8%A9

If you need to register a new tax rate in Edara — whether it is VAT or Withholding Tax — the system allows you to do this easily for stock items, service items, or both.

## Creating a New Tax Rate

You can create a VAT rate on sales, a VAT rate on both sales and purchases, or a Withholding Tax rate.

### Creating a VAT Rate on Sales Only

1. Go to the “Accounting” module.
2. Open the “Taxes” page.
3. Click on “ **New Tax Rate** ”.
4. Enter the tax name and rate.
5. Select the scope (Service Items –Stock Items – Any).

> **Note:** The scope cannot be changed after any transactions are recorded.

1. Choose the Sales tax [account](https://help.getedara.com/en/articles/5244462-creating-a-new-account) .
2. Click on “ **Save** ”.

![Creating a VAT Rate on Sales Only — Click on “Save”.](https://help.getedara.com/images/accounts-setup/9379951/01.en.gif)

### Creating a VAT Rate on Both Sales and Purchases

Follow the same steps above, then do the following:

1. Enable “Collected on purchase”.
2. Select the Purchase tax account.
3. Click on “ **Save** ”.

> **Note:** When selecting the purchase tax account, choose the same account as the sales tax account, since selecting different accounts for the same tax type is not currently supported.

![Creating a VAT Rate on Both Sales and Purchases — Click on “Save”.](https://help.getedara.com/images/accounts-setup/9379951/02.en.gif)

### Creating a Withholding Tax Rate

Follow the same steps as creating a sales tax until selecting the scope, then do the following:

1. Enable “Withholding tax rate”.
2. Select the Sales tax [account](https://help.getedara.com/en/articles/5244462-creating-a-new-account) .
3. Click on “ **Save** ”.

![Creating a Withholding Tax Rate — Click on “Save”.](https://help.getedara.com/images/accounts-setup/9379951/03.en.gif)

## Frequently asked questions

**Can I change the tax scope after transactions are recorded?**

The scope cannot be changed after any transactions are recorded.

**Can I choose a purchase tax account different from the sales one?**

When selecting the purchase tax account, choose the same account as the sales tax account, since selecting different accounts for the same tax type is not currently supported.