In Canada, we have several product categories that are wholly or partially tax-exempt from federal taxes, as well as separate product exemptions from provincial taxes in some provinces.

There is also the possibility of exemptions or different taxes required to be collected based on the customer's location or other characteristics (eg, some B2B transactions are PST exempt) and a business's operations (if a business advertises in some provinces, they are liable for collecting provincial taxes on sales to that province)

I don't think Canada could possibly be unique in this regard.

The current implementation has no allowance for products to qualify for some taxes but not others and for the business to administer taxes on invoices generated via zoho books any way but manually or via expensive (and low-capacity) 3rd-party automation.

Some sort of tax matrix where both customers and products have tax information defined for different levels of government and a method to define which taxes should be applied based on the product, customer and shipping/warehouse locations is needed to let users fully exploit zoho books/inventory without tedious manual input for every sale.