---
title: "About Taxes"
slug: "about-taxes"
updated: 2025-12-01T12:04:57Z
published: 2025-12-01T12:04:57Z
canonical: "help.elorus.com/about-taxes"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.elorus.com/llms.txt
> Use this file to discover all available pages before exploring further.

# About Taxes

A tax is an amount that businesses are required to pay to the public sector either on product purchases (e.g. VAT) or based on their income or assets.

## Tax categories

Elorus categorizes the taxes into 3 types. Each type differs in the way that it affects the payable amount.

### VAT/GST Taxes

VAT taxes are levied on the price of each product/service entry included in an invoice.

See how to add a VAT/GST tax in the [related article](/docs/add-vat-gst-tax)

### Withholding tax

Withholdings and deductions are typically state-imposed requirements that oblige the recipient of an invoice to withhold or deduct a tax amount from the payment and remit it to the state. As a result, the total invoice value needs to be distinguished from the amount payable.

See how to add a withholding tax in the [related article](/docs/add-withholding-tax).

### Simple taxes

You can create your own tax by selecting the specific category. Then, define whether the tax will be a fixed amount, a variable amount, or a percentage, and specify if its value will be positive or negative.

See how to add a simple tax the [related article](/docs/add-simple-tax).