It's easy to create and amend tax codes. Let's take a look at how to do this.

TIP: You can find details of the default tax code settings in our handy guides:

• Default tax codes - v27.1 and above - UK
• Default tax codes - v27.1 and above - Ireland

Create or edit a tax code

1. On the menu bar click Settings, click Configuration then click Tax Codes.
2. Select the required tax code and click Edit.
3. Complete the Edit Tax Code window as follows:
    NEW: In v30 and above, if you use Sage Invoice Payments you will also see a tickbox to enable Invoice Payment fees on a tax code. Select this option to automatically apply the reverse charge for invoice payment bank transactions to your VAT Return.  
   

   Rate	Enter the required percentage. For example, to set up a 5% VAT rate, enter 5.00 in this box.  If you select the EC Code check box, the Rate box becomes inactive.
   Include in VAT return	To include transactions with this tax code in the VAT Return, select this  check box.
   Invoice Payment fees	(v30 and above) Tick this box to automatically apply the VAT reverse charge to bank payments received via Stripe for Invoice Payments.
   Reverse Charge	You should only use this for the sale or purchase of items that fall under the remit of carousel fraud. For example, mobile phones. Don't use it for standard reverse charge transactions.
   Flat Rate Capital Asset	Select this option if you're on a Flat Rate VAT scheme and want to use the tax code for capital assets.
   Enable EC Code or EC  Code	To flag your tax code as an EC tax code, select this check box then from the drop-down lists, choose the relevant options.
   Link To	This option is only available for EC purchase tax codes.  If this tax code should record notional VAT, choose the required tax code you want to link to. Notional VAT is calculated based on the rate of the code you link to.
   Description	Enter a description for the tax code.

4. Click OK then click Apply.
5. Click Close then if prompted to save the changes, click No.