VAT Code Information window—VAT - EC Purchases view

The VAT Code Information window enables you to set up VAT codes that you can then assign to sales, purchases and other transactions.

In the EC Purchases view of the VAT Code Information window, you set up VAT codes to use for purchases that conform to HM Revenue & Customs rules governing intra-EC supplies. The VAT rate for these purchases is 0%, as you are not charged VAT. However, the amount of VAT you would have paid if you had purchased within the UK will appear on your VAT reports.

After you set up your VAT codes, you can use them in your transactions.

Field Descriptions

VAT Code

Enter a three character tax code.

When you enter sales or purchases, you can enter these letters to assign this tax code to the transaction.

Each time you enter a transaction in the Sales or Purchases window, you'll be able use this VAT code to assign this VAT to the transaction you're creating.

Description

Enter a short description of the tax code.

VAT Type

Select the type of VAT code you want to create.

Rate

This field displays the VAT rate for the selected VAT type. For EC Purchases VAT codes, the rate is 0%, as you do not pay VAT on these types of purchases. You cannot change this rate.

EC Reported Rate

Enter the VAT rate you would have paid if you had purchased from within the UK. This amount appears on your VAT reports.

Linked Account for VAT Collected

Enter the account you use to track the VAT you collect from your customers. This is usually a liability account.

Linked Account for VAT Paid

Enter the account you use to track the VAT you pay to your suppliers. This is usually a liability account.

Linked Card for VAT Authority

If you have set up a card for HM Revenue & Customs in your Card File, select that card.

New

Click to create a new VAT code.

OK

Click to save the entries you’ve made in this window.

Tips for this window

Related topics

■	EC purchases

■	Setting up VAT codes