How to change VAT in Odoo Accounting

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, update your tax settings in Odoo so all invoices reflect the new rate.

Step-by-Step Guide

Step 1. Navigate to Configuration

  1. Enter Odoo Accounting.
  2. From your main menu, click on Accounting or POS.
  3. From the top menu, navigate to Configuration > Accounting > Taxes.

Step 2. Create or Edit a Tax

  1. Click New or select an existing VAT entry to update.
  2. Set the Tax Name to the new VAT name of your choice (e.g. 15.5%).
  3. Set the Amount to the new Tax rate (e.g. 15.5).
  4. Make sure Tax Type is Sales and Active is toggled ON.

Step 3. Set Distribution

  1. Under Definition, set 100% of tax to apply to the Base for both invoices and refunds.
  2. Leave Tax Scope and Fiscal Position as default unless you use custom setups.

Step 4. Save and Test new Tax Rate

  1. Click Save.
  2. Try creating a test invoice to confirm VAT is calculated at the new rate.

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