> For the complete documentation index, see [llms.txt](https://docs.cwsuite.com/purchase/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cwsuite.com/purchase/fundamentals/getting-set-up/tax-category-1.md).
# Tax Category
The Tax Category in the purchase module is a classification system used to determine the tax rate applied to products or services during a purchase. This grouping considers similar tax regulations to ensure that the correct tax is levied on the transaction. By using the Tax Category in the purchase module, organizations can ensure compliance with tax laws and accurately calculate the taxes owed on purchases.
#### Adding Tax Category
* To add a Tax Category, Click on Settings present in the Menu.
* Now click on the Tax Category button on the left side menu and click Add New button.
* The process involves adding a Tax Category Name, Intra Region Tax, and Inter Region Tax.
* And then finalizing the information by clicking on the Save button.
