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Help PageVAT code management
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TopicsAccounts

Vat Codes can be found in two places. Under Maintenance/Company/Countries and under Accounting/Parameters/VAT Codes.
If you are registered for Vat in a particular country then the Vat Registration Code and Vat Rates should be entered under the Country page. A Vat Region should also be specified for all countries.
Vat Codes must be allocated a Type.

The idea is that you use the countries page to add and delete vat codes for a particular country, but you can use the VAT Codes page to get an overview of all the vat codes in use on the system.

Core Products such as Exhibitions and Publications will be allocated to a Vat Country. They should only be allocated to a country that has valid Vat codes setup.
The Vat Country for an Exhibition is usually the country where the Exhibition is being held.
The Vat Country for a Publication is usually the country where it is produced.
Products will also be allocated a default Vat Code, e.g. Standard or Exempt. The Vat Country and Code will automatically be applied to any new Items setup on the Product but these can be changed if required.

Companies may be given a Vat Registration Number and also possibly marked as a Charity. These, along with the country of their Main Address, will help to determine the final Code and Vat rate that gets applied to any orders they place.

When an order is placed, a Vat Code will be assigned to the order line. This code relates to the main company on the order and is only used as a guide when viewing the potential Vat liability of any Order.
The Vat rules applicable to each code will then be checked to see if the code needs to be changed.

Many factors can influence the final Vat Rate charged to the Invoiced Company but the following are the most important:

  • Companies Vat Country and subsequent Vat Region
  • The presence of a Company Vat Registration Number
  • The Companies Charity Status
  • The Stock Items Vat Country and subsequent Vat Region
  • The Stock Items Vat Code

Vat Rules are finally used to determine the correct vat code and rate to apply to any Order or Invoice.

The Vat Rules are setup for each countries vat code. Vat Rules work by the system initially picking the Vat Code from the Item being ordered or invoiced and then applying any applicable rules to change the code if needed.
Using this method, if no rules are setup then the default vat code will be the one specified by the item.
So if the initial code is UK standard Vat at 20% but a rule is identified that due to the companies Vat Registration Code being filled out and that Company also being in the EU but not in the UK then the Vat Code is changed to the E.C. Rate.