The VAT codes and rates used throughout the system are set up and maintained in the General Configuration tables. You can set up an unlimited number of VAT codes, specifying for each one the rate as a percentage, and the General Ledger control account.

When specifying the General Ledger VAT control account, you can browse on cost centres, account codes and posting codes.

VAT codes also store additional control information, required when sales to customers registered for VAT in other EC states are invoiced:

• A VAT code can be used with a Contract Management supplied service such as rental or Project Billing supplied service such as cleaning. The VAT code must be flagged accordingly, if the charge for the Contract Management or Project Billing supplied service is to be included in the EC Sales List (from 2010) and system key ECRBSERV (Contract Management) or ECSBSERV (Project Billing) is set.
• The VAT invoicing declaration to be printed on intra-EC invoices classed as exempt, zero rated or reverse charge is stored against a VAT code. The VAT code, therefore, determines which declaration, if any, is printed on an invoice, with system keys OPECVATLN (for invoices posted via Sales Invoicing, Telesales or Point of Sale), RBECVATLN (for invoices posted via Contract Management) and SBECVATLN (for invoices posted via Project Billing) determining where on the invoice the VAT invoicing declaration is actually printed.
  As HM Revenue & Customs (HMRC) have not imposed specific rules regarding the actual text to be printed it is acceptable for the messages to be changed to suit individual businesses. Should you wish to change the text to be printed you can do so via the option Messages. The messages can be found in sy, system, ec_vat_messageE, ec_vat_messageR and ec_vat_messageZ. In addition, the message sy, system, ec_vat_code can be used if printing the VAT invoicing declaration in the tail of the invoice.
  Note that if the VAT invoicing declaration is printed in the invoice tail (xxECVATLN=TAIL) additional fields must be made available on the invoice print forms. Please refer to Sales Invoices - Invoice layout, Contract Invoicing and Revenue or Project Billing Invoices, as appropriate, for further information.

Control over the deletion of VAT codes, or the amendment of VAT rates or General Ledger VAT control accounts is enforced if your system is set up to use European Tax and Enhanced Transaction Tracking, and system key CEGENCONT is set.

Other details and accounts defined on the VAT code record include the following, if your system is set up to use European Tax:

Refer to European VAT Requirements for further details.

You must specify against each VAT code the VAT service code that is used in Purchase Invoicing, if you use Purchase Order Processing.

See Also :

• VAT:
  • VAT Matrix
  • Telesales VAT Exception Processing
• European VAT :
  • Supplementary VAT
  • Partially Recoverable VAT
  • VAT Rounding Rules
  • VAT Ledger Indicator
  • VAT Line Code
  • VAT Controls
  • Sales VAT Postings
  • Tax Retentions
  • Italian Customer-Supplier Listing
• VAT Clawback
• VAT Exception Reports
• Intrastat
• Posting Codes
• Currencies :
  • Base (Local) Currency
  • Foreign Currency
  • Currency Types
  • Realise Exchange Differences
  • Exchange Difference Accounts
  • Revaluation Control
• Prepayments :
  • Cash Audit Trail
  • Prepayments
  • VAT Codes
  • Accounts Receivable / Accounts Payable Cash
  • Transaction Enquiry/Archived Transaction Enquiry
  • Reports
  • Closed Items Cleardown
• Customers
• Suppliers :
  • CIT Details
  • EC VAT Intrastat
  • Supplier Enquiry
  • Supplier Details Report
  • Year End Supplier Cleardown
• Settlement Discount
• Telesales Sales Orders