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:
- Go to: Financial / Enter / Journal.
- 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
|