Skip to main content
VAT Codes

Learn what a VAT Code is and how to use one.

G
Written by Greg Mandy
Updated over a month ago

Get to grips with VAT codes.

VAT Codes are Service Geenis way of streamlining your process by setting up VAT codes for various scenarios through System defaults.


Getting There

You can access System Defaults by:

  • Clicking the Settings menu athe top right of the screen.

  • From there, head to System Defaults which is the 4th tab along.

System Defaults is covered in the System Settings Article:


Setting up VAT Codes

When you are in the System Defaults Tab, VAT Codes are in the first data field on the left.

  • Click on the ellipsis (...) to either add an existing code or create a new one.

    • You can edit a current one from the Action Tray.

    • To add a new one click the +Add button.

The editor window is the same for adding a new one or editing an existing one.

  • Here you can fill in the fields, not all are mandatory but we will break them down below.

VAT Code

The VAT Code field is where you will name the Code, it is important to appropriately name it as you will be referring to is regularly. Ideally the name will have the initials of the scenario/product or service followed by the percentage amount.

Percentage

Here you can add a value from 0-100, you can also add decimal places such as 0.5%.

Accounts using this VAT code are Zero Rated or Exempt

Zero Rated: No VAT is added to the sale, but the business can still claim back VAT on any related expenses.

Exempt: No VAT is added to the sale, the business cannot claim back VAT on any related expenses.

Description

This is a useful field to help remember what this VAT Code was for, if its for a specific customer, product or even a seasonal/ promotional code.

TPL Code

This is a code used to designate a Third-Party Liability (TPL) in relation to Value Added Tax (VAT). Specifically, this is used in situations where a third party, such as a contractor or intermediary, is responsible for collecting and remitting VAT on behalf of the end customer or supplier.

Default

This option allows you to set this code as the default VAT Code for the system.

  • After filling in all the fields, click Save to confirm the changes.

  • Select your newly created code from the VAT Code list to add it to the System Defaults.

You have successfully set up a VAT Code!

Did this answer your question?