---
title: "Create a tax rate"
method: POST
path: "/accounting_tax_rates"
tags: ["Accounting tax rates"]
---

# Create a tax rate

`POST /accounting_tax_rates`

## Request

- Base URL: `https://api.sandbox.monite.com/v1`
- URL: `https://api.sandbox.monite.com/v1/accounting_tax_rates`
- Auth: HTTP bearer

Create a tax or VAT rate for use in [expense management](https://docs.monite.com/expense-management/index). You can attach the created tax rates to line items in receipts via the `accounting_tax_rate_id` field of line items.

**Note:** These tax rates are different from [`/custom_vat_rates`](https://docs.monite.com/api/custom-vat-rates/post-custom-vat-rates) and [`/vat_rates`](https://docs.monite.com/api/vat-rates/get-vat-rates) which are used in [accounts receivable](https://docs.monite.com/accounts-receivable/index).

## Headers

- `x-monite-version` string, required
- `x-monite-entity-id` string, required

## Request body

- object
  - `code` string: A user-defined reference code by which the tax can be identified. This is similar to the codes used in accounting systems.
  - `description` string: An arbitrary description of the tax rate.
  - `effective_tax_rate` integer: The tax rate value as the percentage multiplied by 100. For example, 12.5% is represented as 1250.
  - `name` string: The display name of the tax rate.

## Response `201`

Successful Response

- AccountingTaxRateResponse
  - `id` string, uuid, required: A unique Monite-generated ID assigned to this tax rate. You can use this ID as the value of the `accounting_tax_rate_id` field in line items of payables, receivables, and receipts.
  - `created_at` string, date-time, required: UTC date and time when this tax rate was created in Monite. Timestamps follow the ISO 8601 format.
  - `updated_at` string, date-time, required: UTC date and time when this tax rate was last updated in Monite.
  - `code` string: The reference code of the tax rate.
  - `components` TaxComponentResponse[]: An array of tax components.
    - `is_compound` boolean: A flag to indicate with the tax is calculated using the principle of compounding.
    - `name` string
    - `rate` integer: Component tax rate as a percentage multiplied by 100. For example, 12.5% is represented as 1250.
  - `description` string: An arbitrary description of the tax rate.
  - `effective_tax_rate` integer: The effective tax rate value as the percentage multiplied by 100. For example, 12.5% is represented as 1250. For manually created tax rates (`is_external`=`false`), this is the tax rate value defined by the user. For tax rates fetched from accounting systems (`is_external`=`true`), the effective tax rate is calculated based on the `components`. * In case of QuickBooks, `effective_tax_rate` is the same as `total_tax_rate` and is the sum of all tax components. * In case of Xero, the effective rate can be higher than the sum total. This happens in the _compounded_ tax rate scenarios, where multiple taxes are applied in a sequence and later taxes are applied to amounts that already include earlier taxes.
  - `is_external` boolean: `true` if this tax rate was fetched from the connected accounting system, or `false` if it was created manually by the entity.
  - `name` string: The display name of the tax rate.
  - `status` string
  - `total_tax_rate` integer: Used only in tax rates fetched from accounting systems (`is_external`=`true`). Specifies the total (not compounded) tax rate value as the sum of all components. The value is the percentage multiplied by 100. For example, 12.5% is represented as 1250. For QuickBoooks, `total_tax_rate` is the same as `effective_tax_rate`.

## Other responses

- `400`: Bad Request
- `401`: The `Authorization` header is missing or contains an invalid or expired access token. See [Authentication](https://docs.monite.com/api/concepts/authentication) to learn how to authenticate API calls.
- `403`: The specified access token does not have permissions to perform this operation.
- `422`: Validation Error
- `429`: API rate limit has been exceeded. Check the response headers for the rate limit information.

---

[API](https://skmtc.dev/monite/apis/monite-2.md) - [All operations](https://skmtc.dev/monite/apis/monite-2/llms.txt) - [OpenAPI document](https://skmtc.dev/monite/apis/monite-2/revisions/4299ccf95edb?raw)