How to Change VAT in Odoo 17

How to Change VAT in Odoo 17

Overview

It is important to know when and how to change the VAT in your system to stay tax compliant and keep our tax records correct. For example, in January 2026, ZIMRA's VAT increased from 15% to 15.5% under the 2026 Budget.
To stay compliant, update your tax settings in Odoo so all invoices reflect the new rate.

Step-by-Step Guide

Step 1. Navigate to Taxes

  1. Log into Odoo 17 with Admin rights.
  2. Go to Accounting module.
  3. Navigate to Configuration → Taxes.

Step 2. Update/Add New Tax Record

Here you can view your old VAT record, which you may want to update.
Alert
Important: Odoo best practice is not to edit historic tax rates.
So instead, you would need to create a new tax record
  1. Click Create.
  2. Add the new VAT name, e.g. VAT 15.5%.
  3. Set the type to Sales & Purchase.
  4. Set the amount to the new tax rate, e.g. 15.5.
  5. Set Tax computation to Percentage of Price.
  6. Click Save to save changes and exit.

Step 3. Updating Products

  1. Navigate to Products → Edit → Accounting tab → Change Customer Tax & Vendor Tax 
  2. Set the new tax rate to the newly created tax record.
    1. Fiscal Positions (if applicable) → Adjust mapping rules.
  3. Create a test invoice with a draft.

    • Related Articles

    • How To Change VAT in Odoo Cloud

      Overview To change a VAT rate in Odoo Cloud, it is recommended that you create a new tax record with the updated rate rather than editing the existing one. This approach preserves the historical accuracy of past transactions. Step-by-step Guide Step ...

    • How to change VAT in Odoo Accounting

      Overview It is important to know when and how to change the VAT in your system to stay tax compliant and keep our tax records correct. For example, in January 2026, ZIMRA's VAT increased from 15% to 15.5% under the 2026 Budget. To stay compliant, ...

    • Updating VAT in Cin7 Core

      Step-by-Step Guide Step 1: Go to Tax Settings Log in to Cin7 Core with your Admin credentials. Navigate to Settings → Financial Settings → Tax Rules. This is where all tax rules are created and managed. Step 2: Create a New Tax Rule Default tax rules ...

    • Updating Excel template to the VAT Tax rate

      Overview If you are currently having issues with updating your VAT from the old tax rate to new tax rate (i.e. 15% to 15.5% as of January 1st 2026), the following instructions are on how to update it on your Fiscal Harmony Template. This also ...

    • Updating VAT in Sage Evolution

      Step-by-Step Guide Step 1: Open the Tax Types Setup Open Sage Evolution and select the company to log in as Admin. On the main menu, navigate to Administration → Tax → Tax Types. You will see a list such as: Input VAT (Purchases) Output VAT (Sales) ...