Item: VAT Tab

Use the VAT tab to assign a reduced VAT rate for an item if it is a reduced rate item.

VAT Tab Fields

Field

Used for

Use special rules for VAT

For Service item type, you can activate an additional Use special rules for VAT option.

Note: The Use special rules for VAT option is valid only for sales items.

This option is provided specifically for special services item type.

Special services such as telecommunications, broadcasting and electronic services are always taxed in the country where the customer belongs to. The rules are applicable to both businesses and consumers. If you provide such services, you must adhere to this approach to telecommunications taxation. To enable it for your items, turn on the Use special rules for VAT option.

Note: If the Use special rules for VAT option is activated, no reduced VAT rates have to be additionally added.

Special type of services

This field enlists the services for which you can use special rules for VAT. List of services is provided for informational purposes.

The enlisted special type of services includes electronically supplied services, telecommunications and broadcasting.

Country

Country where the customer belongs to (where your customer has a permanent address or usually resides).

Reduced VAT

Select a reduced VAT rate from the list of pre-defined country-specific reduced VAT rates or create a new reduced rate.

Note: You can assign several reduced rates to an item if required.

VAT rate, %

VAT rate is calculated automatically and is provided for informational purposes.


More information
VAT Rate