How your default tax rate works

Based on organization version Xero generates default tax types for you.

Here is the list of those constraints.

Global

Code	Name	Revenue	Expenses	Liabilities	Equity	Assets
GSTONIMPORTS	Sales Tax on Imports	✘	✘	✔	✘	✘
NONE	Tax Exempt	✔	✔	✔	✔	✔
INPUT	Tax on Purchases	✔	✔	✔	✔	✔
OUTPUT	Tax on Sales	✔	✔	✔	✔	✔

Code	Name	Revenue	Expenses	Liabilities	Equity	Assets
OUTPUT	Tax on Sales	✔	✔	✔	✔	✔
GSTONIMPORTS	Sales Tax on Imports	✘	✘	✔	✘	✘
NONE	Tax Exempt	✔	✔	✔	✔	✔
INPUT	Tax on Purchases	✔	✔	✔	✔	✔

Code	Name	Revenue	Expenses	Liabilities	Equity	Assets
INPUT	12.5% GST on Expenses	✘	✔	✔	✔	✔
OUTPUT	12.5% GST on Income	✔	✘	✔	✔	✔
INPUT2	15% GST on Expenses	✘	✔	✔	✔	✔
OUTPUT2	15% GST on Income	✔	✘	✔	✔	✔
GSTONIMPORTS	GST on Imports	✘	✘	✔	✘	✘
NONE	No GST	✔	✔	✔	✔	✔
ZERORATED	Zero Rated	✔	✘	✔	✘	✘

Code	Name	Revenue	Expenses	Liabilities	Equity	Assets
BASEXCLUDED	BAS Excluded	✔	✔	✔	✔	✔
EXEMPTCAPITAL	GST Free Capital	✘	✔	✔	✔	✔
EXEMPTEXPENSES	GST Free Expenses	✘	✔	✔	✔	✔
EXEMPTEXPORT	GST Free Exports	✔	✘	✔	✔	✔
EXEMPTOUTPUT	GST Free Income	✔	✘	✔	✔	✔
CAPEXINPUT	GST on Capital	✘	✔	✔	✔	✔
GSTONCAPIMPORTS	GST on Capital Imports	✘	✘	✔	✘	✘
INPUT	GST on Expenses	✘	✔	✔	✔	✔
GSTONIMPORTS	GST on Imports	✘	✘	✔	✘	✘
OUTPUT	GST on Income	✔	✘	✔	✔	✔
INPUTTAXED	Input Taxed	✔	✔	✔	✔	✔

Code	Name	Revenue	Expenses	Liabilities	Equity	Assets
CAPEXSRINPUT	15% (VAT on Capital Purchases)	✘	✘	✘	✘	✔
CAPEXSROUTPUT	15% (VAT on Capital Sales)	✘	✘	✘	✘	✔
SRINPUT	15% (VAT on Expenses)	✘	✔	✔	✔	✔
SROUTPUT	15% (VAT on Income)	✔	✘	✔	✔	✔
CAPEXINPUT	17.5% (VAT on Capital Purchases)	✘	✘	✘	✘	✔
CAPEXOUTPUT	17.5% (VAT on Capital Sales)	✘	✘	✘	✘	✔
INPUT	17.5% (VAT on Expenses)	✘	✔	✔	✔	✔
OUTPUT	17.5% (VAT on Income)	✔	✘	✔	✔	✔
CAPEXINPUT2	20% (VAT on Capital Purchases)	✘	✘	✘	✘	✔
CAPEXOUTPUT2	20% (VAT on Capital Sales)	✘	✘	✘	✘	✔
INPUT2	20% (VAT on Expenses)	✘	✔	✔	✔	✔
OUTPUT2	20% (VAT on Income)	✔	✘	✔	✔	✔
RRINPUT	5% (VAT on Expenses)	✘	✔	✔	✔	✔
RROUTPUT	5% (VAT on Income)	✔	✘	✔	✔	✔
EXEMPTINPUT	Exempt Expenses	✘	✔	✔	✔	✔
EXEMPTOUTPUT	Exempt Income	✔	✘	✔	✔	✔
NONE	No VAT	✔	✔	✔	✔	✔
GSTONIMPORTS	VAT on Imports	✘	✘	✔	✘	✘
ECZRINPUT	Zero Rated EC Expenses	✘	✔	✔	✔	✔
ECZROUTPUT	Zero Rated EC Goods Income	✔	✘	✔	✔	✔
ECZROUTPUTSERVICES	Zero Rated EC Services	✔	✘	✔	✔	✔
ZERORATEDINPUT	Zero Rated Expenses	✘	✔	✔	✔	✔
ZERORATEDOUTPUT	Zero Rated Income	✔	✘	✔	✔	✔