VAT Rate Table

In order to generate bills and invoices, it is necessary to define the VAT rate which applies to each type of sale or purchasing. For each item category a specific VAT rate is defined. Knowing the category of the item makes it possible to get the corresponding VAT to use in the corresponding financial document, from the database.

One has to enter the necessary information in the VAT rate table: for each rate, one has to define a) the code of the rate (a single figure), b) an explanation and c) the VAT rate (in percent). The following are illustrations:

•      a) 0, b) items that are VAT free, c) rate : 0

•      a) 1, b) reduced rate, c) rate : 5,5%

•      a) 2, b) normal rate, c) rate 19,6%

 If the General ledger option is selected, this table enables the user to record the code of the Prepaid VAT account (for purchasing) and the Accrued VAT account (for sales). .