VAT Categories

VAT categories define the tax rates you apply to products and bookings. Each category has a name, a percentage rate, and a code for accounting purposes. You assign a VAT category to each product in your inventory, and the rate is used when calculating prices and generating invoices.

How It Works

You create VAT categories for each tax rate your business needs (e.g., "Standard 24%", "Reduced 11%", "Zero-rated 0%"). One category is marked as the default, which is pre-selected when creating new products. The VAT percentage is applied to product pricing and appears on invoices.

Key Concepts

VAT Category Properties

Default Category

One VAT category must be the default. When you mark a category as default, the previous default is automatically unset. The default category is pre-selected when you create new inventory products.

Common Tasks

Creating a VAT Category

1. Navigate to Data > VAT Categories
2. Click Add
3. Enter the name and code
4. Set the percentage rate
5. Mark as default if this should be the pre-selected rate for new products
6. Click Save

Updating a Tax Rate

If a tax rate changes, update the percentage on the existing VAT category. This affects future pricing calculations but does not retroactively change existing bookings or invoices.

How It Connects

• Inventory — Each product is assigned a VAT category that determines its tax rate.
• Suppliers — Supplier reports include VAT category information for each booking.