VAT rates

Summary

How the setup and usage of VAT rates in Accounting Start

Resolution

There are six pre-set VAT rates to choose from. Simply choose the appropriate VAT rate for your transaction.

We'll manage the creation and maintenance of VAT rates for you whenever there's changes or new rates needed.

Available VAT rates

Standard – 23%
Reduced Rate – 13.5%
Second Reduced Rate – 9% (only available until 31 August 2023)
Zero Rated – 0%
Exempt – Transactions are exempt from VAT
No VAT – Transaction is non-vatable

You can't edit or set up your own VAT rates because it's maintained automatically.

VAT rates and the VAT return

The table below indicates the boxes on the VAT Return impacted by the various rates.

VAT rate	Sale or purchase	Box
Standard	Sale	T1
Standard	Purchase	T2
Reduced Rate	Sale	T1
Reduced Rate	Purchase	T2
Second Reduced Rate	Sale	T1
Second Reduced Rate	Purchase	T2
Zero Rated	Sale	N/A
Zero Rated	Purchase	N/A
Exempt	Sale	N/A
Exempt	Purchase	N/A
No VAT	Non-vatable rates don’t appear on the VAT Return.

If you deal with overseas customers or suppliers, the following also applies:

VAT for standard-rated goods/services from a VAT registered EU supplier or non-EU supplier goes in boxes T1 and T2
The net value of the sale of goods to a VAT-registered EU customer appears in box E1
The net value of the purchase of goods from VAT-registered EU suppliers appears in box E2
The net value of services supplied to a VAT-registered EU customer appears in box ES1
The net value of services supplied to a VAT-registered EU supplier appears in box ES2

Change the VAT rate on a ledger account

Each ledger account holds a default VAT rate to save you from having to select the correct rate each time you use it. It's simple to change the default.

NOTE: Changing the default rate won't change existing transactions. They'll remain with the rates set at the time of their creation.

Select Settings, then Business Settings, then Chart of Accounts.
Use the search to find the ledger account to change.
Select the required ledger account.
Choose the VAT rate to use from the VAT Rate dropdown.

Solution Properties

Solution ID: 222001000100573
Last Modified Date: Tue Apr 30 09:58:00 UTC 2024
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