Use VAT codes for items

Apply the correct VAT code to each item so quotations and invoices calculate tax correctly.

Items store prices excluding VAT.

Use the correct VAT code so customer documents calculate the right tax rate.

1

Open the item

Go to Items.

Open the item you want to update.

2

Edit the item

Click Edit.

3

Select the VAT code

Choose the correct VAT code for the item.

4

Save the item

Save the changes so the code is reused on future documents.

Why VAT codes matter

They help you:

• calculate tax correctly on quotations and invoices
• separate items with different VAT rates
• keep the catalog ready for reuse

Frequently asked questions

Is the unit price stored including VAT?

No.

The unit price is stored excluding VAT.

Can different items use different VAT rates?

Yes.

That is exactly what VAT codes are for.

Do I need to choose a VAT code for every item?

You should when the item can appear on quotations or invoices.

Related topics

• Understand item fields and options
• Add items to quotations and invoices
• Items and Materials