Special Tax Code

To record the postponed VAT, you will need a new VAT code. This is set up as follows:

  1. Choose Show>Tax Rates

The Tax Rates list window will be displayed.

  1. Click the New toolbar button

The tax rate entry window will be displayed.

  1. Enter a tax code for Postponed VAT (we suggest "VPA")

Note: The tax code must start with "V", or whatever letter is the first character of your normal VAT code(s) if you have changed it.

  1. Give it a description of "Postponed VAT", ensure the Tax Type is "G.S.T. or V.A.T.", and tab through the two account fields which will auto-populate with your default VAT accounts
  1. Leave the tax rates as zero, but set the All Tax radio button
  1. Click OK to save the new tax rate