Set VAT Code Order of Precedence
The VAT code used in transactions depends initially on the VAT Status of the Customer or Supplier record.
For Suppliers:
This is selected from the menu on the record window and defaults to the Home Country and the Home Tax as shown on the Home Defaults window.
For Customers:
This is primarily selected from the menu on the record window and defaults to the Home Country and the Home Tax as shown on the Home Defaults window.
Delivery Address A different VAT Status can be selected for secondary addresses held for a Customer. On a transaction, if the selected Delivery address has a different VAT status to the main record, the VAT status on the Delivery address will take precedence.
This Help topic uses GB VAT as the default (Home Country = GB and Home tax = VAT).
When the table refers to the Customer/Supplier VAT code, this is the VAT code from VAT window on the Customer/Supplier Record.
Customer/Supplier VAT status ...GB VAT
Any of the VAT codes that have GB VAT status can be used. VAT codes with EU VAT status cannot be used.
If a VAT code exists and has an acceptable VAT status, the following order of precedence will apply:
Customer/Supplier VAT Code
VAT Code from the Analysis Record
Default to VAT Code 1
Customer/Supplier VAT status ...EU VAT
Any of the VAT codes that have EU VAT status can be used. VAT codes with GB VAT status cannot be used.
If a VAT code exists and has an acceptable VAT status, the following order of precedence will apply:
Is the Customer/Supplier VAT Registered?
Yes Customer/Supplier VAT code**
VAT code from the Analysis Record ***
Sales Ledger Purchase Ledger
VAT Code G Use VAT Code A
No Customer VAT code if VAT Code is T or U VAT Code T
VAT Code U VAT Code T
Notes Regarding Exceptions
**If there is a default VAT Code set on the Customer/Supplier record then this is applied. Where the item has been flagged as a Service then exceptions to this rule apply:
For SOP transactions:if the item is flagged as a Service and the selected Delivery Address and Invoice Address are both EU VAT Registered then VAT Code 'X' is applied.
For POP transactions: if the item is flagged as a Service and the Supplier address is EU VAT registered then VAT Code 'X' is applied.
*** The system first looks to see if there is a default code held against the Customer/Supplier record. If there is no default, then a VAT code set on the analysis record is applied. The exceptions to this rule are:
For SOP transactions: where stock/price/resource items are flagged as a Service and where the Customer Delivery and Invoice addresses are EU VAT registered.
For POP transactions: where stock/price/resource items are flagged as a Service and where the Supplier address is EU VAT Registered.
Customer/Supplier VAT status ...Non-EU VAT
The following order of precedence will apply.
Customer Supplier VAT Code
Default to VAT Code 0