VAT - Understanding VAT Rates

Introduction

This guide is to explain different VAT rates available in the system for Customers, Suppliers and Stock & Order Items.

VAT Rates

Within Business Cloud Essentials there is a number of VAT Rates defined for Customers, Suppliers and Stock & Order Items. Some of them are system defaults that cannot be amended while others can be modified or new rates can be added.

Customer VAT types

For Customers these are available VAT Types:

  • UK Standard (20%)
  • UK Zero Rate (0%)
  • UK Exempt (0%)
  • EU Export (0%)
  • Non EU Export (0%)

Supplier VAT types

For Suppliers these are available VAT Types:

  • UK Standard (20%)
  • UK Zero Rate (0%)
  • UK Exempt (0%)
  • EU Import (0%)
  • Non EU Import (0%)
Above mentioned codes are system defaults and cannot be amended or added by users.

Stock & Order Items VAT types

Contrary to Customers and Suppliers, Stock & Order Items populate their VAT Rate list from Accounts > VAT Rates. By default the system is shipped with the following:

  • UK Standard (20%)
  • UK Zero Rate (0%)
  • UK Reduced Rate (5%)
  • UK Exempt Rate (0%)
This list can be expanded by the user.


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