How to set up and manage VAT rates

The VAT rate feature makes it easy to manage VAT when enriching transactions. When a VAT rate is selected, the VAT amount is automatically calculated based on the percentage you’ve set. This helps ensure consistency and reduces manual input errors.

Note: You can only set up and manage VAT rates if you're not using an accounting integration. If you are, you'll need to manage VAT rates from your connected integration.

How to create a VAT rate

1. From the left-side menu, select Configure > Accounting classification.
2. Select View entity next to VAT rate.
3. Select Add item.
4. Enter a name for the VAT rate.
5. Enter the percentage (e.g. 20 for 20%).
6. Optional: Add a code and description to help with identification.
7. Select Create to save the VAT rate.

How to enable or disable a VAT rate

Each VAT rate has a toggle to enable or disable it. When disabled, the VAT rate won't be available to select during transaction enrichment.

1. From the left-side menu, select Configure > Accounting classification.
2. Select View entity next to VAT rate.
3. Select the toggle next to each VAT rate you want to enable or disable.

How to edit a VAT rate

If you want to make changes to a VAT rate, for example, edit the name or percentage, you can do this at any time. Here's how:

1. From the left-side menu, select Configure > Accounting classification.
2. Select View entity next to VAT rate.
3. Select Edit next to the VAT rate you want to change.
4. Make your changes to the name, percentage, code, or description, then select Save.

How to delete a VAT rate

1. From the left-side menu, select Configure > Accounting classification.
2. Select View entity next to VAT rate.
3. Select the Delete icon next to the VAT rate you want to remove.
4. Select Yes, delete to confirm.

Note: After deleting the VAT rate, you'll no longer be able to select it when enriching transactions.

How to control VAT rate visibility

You can control which roles and users can see specific VAT rates. This is useful if you want to limit visibility to certain teams or individuals.

Control VAT rate visibility for specific roles

1. From the left-side menu, select Configure > Accounting classification.
2. Select View entity next to VAT rate.
3. Select Configure visibility.
4. Select Edit.
5. Use the Roles dropdown to select or deselect roles that should have access.
6. Select Confirm.

Control VAT rate visibility for specific individuals

You may want to control visibility by role but still allow visibility for certain users. Here's how you can do it:

1. From the left-side menu, select Configure > Accounting classification.
2. Select View entity next to VAT rate.
3. Select Configure visibility.
4. Select Edit.
5. Use the Roles dropdown to deselect the role.
6. Select Include users.
7. Use the Users dropdown to select any users who should have visibility of the VAT rate.
8. Select Confirm.

Using VAT rates when enriching transactions

When enriching a transaction, you can select a VAT rate from a dropdown. The dropdown will only list VAT rates that are enabled and visible to your role. When selected, the VAT amount will be automatically calculated based on the percentage.

Note: If your account uses the OCR feature, you won't need to manually select the VAT rate. It will be populated automatically providing there is a corresponding item in the VAT rate list. For example, if the OCR feature detects a 20% VAT rate from an uploaded receipt, it will check the VAT rate list and match it with the item that has a 20% value. You can find out more about the OCR feature here.