Select a VAT code in financial entries

When entering the purchase or sales invoice in Financial, you can select a VAT code. Typically, the VAT code is already recorded as a preference for the ledger account.

In the entry line, you can only select the VAT codes that are relevant for the entry. The transaction type (domestic/within the EU/outside the EU) and the Tax field of the VAT duty (for the creditor or debtor) determine which VAT codes you can select.

VAT code in financial entries:

  1. Go to: Financial / Enter / Journal.
  2. From here, follow the procedure for Enter a purchase invoice or Enter a sales invoice.

All the possible VAT codes based on the default VAT duties supplied are listed below:

Purchase/Sale

Description

Transaction

Tax

Also display

Purchase (1)

Domestic purchase

Domestic

Liable to VAT

-

Purchase (2)

Transferred from

Domestic

Transferred

1 (domestic purchase)

Purchase (3)

Purchase within the EU

Within the EU

Transferred

5 (excluded services)

Purchase (4)

Import outside the EU

Outside the EU

Transferred

-

Purchase (5)

Purchase within the EU (Excluded services)

Within the EU

Liable to VAT

-

Purchase (6)

No VAT (Intercompany)

n/a

No VAT

1 (domestic purchase) and 5 (excluded services)

Purchase (7)

Margin arrangement

Domestic

Exempt

1 (domestic purchase)

Sales (1)

Domestic sales

Domestic

Liable to VAT

-

Sales (2)

Transferred to

Domestic

Transferred

1 (domestic sales)

Sales (3)

Sales within the EU

Within the EU

Transferred

5 (telesales)

Sales (4)

Export outside the EU

Outside the EU

Exempt

-

Sales (5)

Telesales

Within the EU

Liable to VAT

-

Sales (6)

No VAT (Intercompany)

n/a

No VAT

1 (domestic sales) and 5 (telesales)

Sales (7)

Margin arrangement

Domestic

Exempt

1 (domestic sales)

Sales (8)

Exempt

Domestic

Exempt

1 (domestic sales)

Directly to

  1. VAT/ICP concepts and scenarios
  2. VAT/ICP concepts and scenarios
  3. Example of a VAT code in financial entries
  4. Example of a VAT code in sales entries
  5. VAT scenarios