VAT - Understanding VAT Rates

Introduction

This guide explains the VAT rates for Customers, Suppliers and Stock & Order Items.

VAT Rates

Business Cloud Essentials allows many VAT rates to be defined for Customers, Suppliers and Stock & Order Items.

The system default VAT rates cannot be amended.

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

Stock & Order Items populate their VAT Rate list from Accounts > VAT Rates. By default the system ships 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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