VAT
If you decide to accept a default setup your VAT codes will be automatically created for you within your agreement and act as a default whenever you select a particular nominal code from your chart of accounts.
However, if you are creating your own chart of accounts you can create your own or additional ones to the existing default ones should you need to.
There is no restriction to the number of VAT codes you can have. Different VAT codes are created for both Sales (Output VAT) and Purchases (Input VAT).
The standard rate for VAT is currently 20%, if this should chang you will need to adjust your VAt rate percentages within your agreement.
Video on how to create or amend a VAT code:
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VAT Codes - Details on how to edit and create
To create or edit a VAT code:
1.Click ’Settings’ > ’System setup’ > ’VAT codes’
a.Click ‘New VAT code’ at above the list area OR
b.Click the ‘Edit’ icon to the right
2.Edit the fields Details
3.Click ‘OK’
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Details about the fields
| Field | Action |
|---|---|
| VAT code | Enter your code, e.g. S-STD’ for 20% Sales (output) standard rate read more about VAT codes |
| Name | Enter the name, e.g., Sales/standard read more about VAT names |
| Type | Select the type of transaction this VAT should be applied to, either sales or purchases Read more about VAT types |
| Rate as % | The VAT rate as a percentage.Read more about VAT rates |
| Account | This refers to the account number within your COA's that the VAT is booked to, the VAT control account. Enter the desired account number or select an account by clicking the ‘…’ (search) icon.Read more about VAT accounts |
| Contra account no. | This can be used if you wish to record VAT on EU goods and related services in a seperate code, otherwise the same can be entered here as above. |
| Rate Type | These are used in conjunction with the other criteria and force the amounts VAT and Net int the correct boxes. Read more amount Rate Types |
If you require more information on VAT you can go direct to the HMRC website