Create a VAT Rate

To create a new VAT rate:

1. On the Set-up menu, click VAT.
2. Click the Rates tab.
   
3. Click Add. A new line is added to the top of the Rates table.
4. Type the following:
   • Rate code – A one or two character code that identifies the VAT rate, e.g. S.

     Note: This code will be used during opXML transactions, so the code must match that used by your suppliers.

   • Rate Name – A name to identify the VAT rate, e.g. Standard.
   • Rate Percentage – The VAT rate e.g. 20.
   • Inclusive – select if the rate is an inclusive rate.
   • Used – select if the rate is in use.
5. In the VAT treatment list, click the VAT treatment that applies to the rate. If the treatment includes a treatment rate, type it into the box.

   Note: Selecting the wrong VAT treatment will change which transaction detail lines contribute to which box of your VAT return. The wrong VAT treatment will make your return incorrect.

6. Click Confirm.

Note: VAT rates will be set up during the implementation of your Horizon system and will rarely change. Making changes can stop orders being received by suppliers.

See Also