VAT >> Rates

VAT Rates

In this option you can specify the VAT rates for the company. You have 10 separate rates available, each identified by a VAT Code from 0 to 9.  

You will notice at the side of each VAT rate you have a calendar icon. Here you can specify VAT rates for particular periods should rate changes be announced. When a rate change occurs you can add the new rate to start from a specific date and the system will automatically calculate the correct rate based upon the transaction date you enter.  

Click Here for details on how to set up VAT rate changes to start from a specific date.

Default VAT Rates

The default VAT rates are used to assign particular VAT rates, or more precisely their VAT codes, to be used for specific purposes by the software.  

Standard Rate

Always used as the default VAT code when no other specific alternative settings are available.

Exempt Rate

Identifies the VAT code for VAT exempt entries.

EC Sales Rate

Used to ensure transactions with this VAT code are calculated into the relevant boxes on the VAT return related to sales to EC states.

EC Purchase Rate

Used to ensure transactions with this VAT code are included into the relevant boxes on the VAT return related to standard rated purchases from EC states,

EC Purchase Zero Rate

Used to ensure transactions with this VAT code are calculated into the relevant boxes on the VAT return related to zero rated purchases from EC states,

No VAT Rate

Used to identify transactions which are unrelated to VAT and involve no VAT processing at all and are excluded from VAT return calculations.

Unallocated Payments

Primarily for cash accounting, this VAT Code is used in cases where payments are not allocated to invoices and no VAT code is specifically assigned.