# Tax Category

The Tax Category in the sales module is a classification system used to determine the tax rate applied to products or services during a sale. This grouping considers similar tax regulations to ensure that the correct tax is levied on the transaction. By using the Tax Category in the sales module, organizations can ensure compliance with tax laws and accurately calculate the taxes owed on sales.

#### Adding Tax Category&#x20;

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

<figure><img src="https://2720728060-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQ3dbuGl942UAqxXLPtnQ%2Fuploads%2FHBU8471WqFnNDwvXhsIv%2FTax%20category%201.png?alt=media&#x26;token=60b1df3e-bfd4-4ad4-a2cf-06857b7b5a7a" alt=""><figcaption></figcaption></figure>

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

<figure><img src="https://2720728060-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQ3dbuGl942UAqxXLPtnQ%2Fuploads%2FaeWsJGTrMCuaZ0Y9WOC5%2FTax%20Category%202.png?alt=media&#x26;token=8aba6ce4-7734-49e9-845b-bcd805567422" alt=""><figcaption></figcaption></figure>


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