VAT Rates

From the Rates tab, you can:

This includes applying a VAT treatment to a VAT rate.

HMRC

It is suggested that the following rates should be created, if you need to use a rate with that VAT treatment.

VAT Code	Name	Percentage	Treatment	Treatment Rate	Inclusive
S	Standard rate	20%	Standard	N/A	Cleared
H	Reduced rate	5%	Standard	N/A	Cleared
Z	Zero rate	0%	Standard	N/A	Cleared
E	Exempt from VAT	0%	Standard	N/A	Cleared
I	Inclusive of standard rate	20%	Standard	N/A	Selected
O	Out of scope	0%	Out of Scope	N/A	Cleared
SE	Sales of goods to EU (standard)	20%	Sale of Goods to EU	N/A	Cleared
ZE	Sales of goods to EU (zero rated)	0%	Sale of Goods to EU	N/A	Cleared
SG	EU acquisitions (standard)	0%	EU Acquisitions (purchase of goods from the EU)	20%	Cleared
ZG	EU acquisitions (zero rated)	0%	EU Acquisitions (purchase of goods from the EU)	0%	Cleared
IG	EU acquisitions (standard inclusive)	0%	EU Acquisitions (purchase of goods from the EU)	20%	Selected
SR	Reverse charge (standard)	0%	Reverse Charge (purchase of services)	20%	Cleared
ZR	Reverse charge (zero rated)	0%	Reverse Charge (purchase of services)	0%	Cleared

All rates you need to use should have Used selected.

VAT Code	Name	Percentage	Treatment	Treatment Rate	Inclusive
S	Standard rate	23%	Standard	N/A	Cleared
H	Reduced rate	13.5%	Standard	N/A	Cleared
L	Second reduced rate	9%	Standard	N/A	Cleared
Z	Zero rate	0%	Standard	N/A	Cleared
E	Exempt from VAT	0%	Standard	N/A	Cleared
I	Inclusive of standard rate	23%	Standard	N/A	Selected
O	Out of scope	0%	Out of Scope	N/A	Cleared