> ## Documentation Index
> Fetch the complete documentation index at: https://pleo-preview.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Configuring Tax Codes

Tax codes imply the Value Added Tax (VAT) rate applied to an expense.

Hence, you must specify the appropriate tax codes that are relevant for your business- this helps to apply the correct tax code to an expense recorded in Pleo.

* To set up tax codes using the **Taxes API**, see the [Tax Code API](https://pleo-preview.mintlify.site/reference/tax-codes-overview.md).

* To set up tax codes in the Pleo application, mention the following details in the **Settings** > **Accounting** > **Setup** tab:

  | Columns | Description |
  | :- | :- |
  | Type | Defines the specific type allocated to the tax. |
  | Name | A specific name for the tax code. |
  | Code | An internal identifier of the ERP/accounting system assigned to the specific tax type. |
  | Tax rate | The percentage of tax applied to an expense with this specific tax code. |


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