VAT - How to raise a reduced VAT rate invoice?

Introduction

Guidance on how to raise a Sales or Purchase Invoice with reduced VAT Rate in Business Cloud Essentials.

Creating a reduced VAT invoice

1. Create a new VAT Rate for required percentage (more details on how to create a new VAT Rate can be found here: VAT Registrations & Rates)
2. From Stock & Order Items, edit the stock item
3. Apply the reduced VAT Rate to the stock item and save changes
4. Raise a new sales invoice and the VAT rate is calculated using the reduced VAT rate