Tax Rates
Define the VAT and tax rates used on invoice and bill lines.
What tax rates control
Tax rates — Standard VAT 20%, Zero-rated, Exempt, and any others you need — are selected on invoice and bill lines to calculate the tax due. They roll up into your VAT returns automatically, so define each rate once here and reuse it rather than typing percentages by hand.
Adding a rate
- Go to Accounting → Tax Rates and click Add Tax Rate.
- Give it a clear name that will make sense in a dropdown, such as
Standard VAT (20%). - Enter the percentage.
- Mark it as the default if it is the rate most of your lines will use.
- Save.
Changing a rate
Do not edit the percentage on an existing rate when the statutory rate changes — that would silently alter historic documents. Create a new rate at the new percentage and set it as the default instead, leaving the old one in place for the periods it applied to.
Tip: Rates flow straight into Accounting → VAT Returns. If a return looks wrong, check which rate the underlying invoice lines used before adjusting the return itself.
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