Creating an Out of Scope VAT Rate

If you have selected HMRC as your VAT authority, then you can create an Out of scope VAT rate which uses the Out of Scope VAT treatment.

Out of scope – lines that should not affect your VAT return are out of scope. Detail lines with a VAT code that use this treatment will not affect your return.

As they are an additional feature of VAT codes, VAT treatments apply at line level.

 

To create an Out of scope VAT rate:

1. On the Set-up menu, click VAT. The VAT Rates window opens.
2. Click in the line above the grid to create a new VAT rate. Enter the following:
   • Rate – O
   • Name – Out of scope
   • Percentage – 0

     Note: If you try and set a Percentage which isn't 0% with a VAT Treatment of Out of scope, then a warning is displayed and the change is not confirmed.

   • Inclusive – clear
   • Used – select
   • VAT treatment – Out of scope.
3. Click Confirm.

See Also