VAT rates

VAT rates.

To apply required UK VAT rates in IPA Books+, VAT codes are used. The standard codes are:

VAT code

Name

VAT rate

S

Standard

20%

R

Reduced

5%

Z

Zero rate

0%

X

VAT exempt

0%

AJS

VAT adjustments

20%

AJR

VAT adjustments

5%

In addition, VAT codes can be enabled to use with the HMRC Postponed VAT Accounting scheme. These are:

VAT code

Name

VAT rate

PVAS

Postponed standard rate VAT for imported goods

20%

PVAR

Postponed reduced rate VAT for imported goods

5%

PVAZ

Postponed zero rate VAT for imported goods

0%

Postponed VAT codes can only be used on transactions dated 01/01/21 or later in line with the Postponed VAT Accounting scheme go live date.

VAT codes can also be applied for Northern Ireland EU VAT rules. These are:

VAT code

Name

VAT rate

SEC

Standard rate VAT to EC members

20%

REC

Reduced rate VAT to EC members

5%

XEC

VAT exempt items to EC members

0%

ZEC

Zero rate VAT to EC members

0%

In your app, you can view the details for each VAT code by clicking on any of the VAT rates.

These VAT rates should cover most VAT scenarios for users. If a new VAT rate is required, follow the steps below.




Adding a VAT rate.
Adding VAT rates is not usually required. We recommend seeking advice from a suitably qualified tax professional before using any new VAT codes.
  1. Choose 'settings'
  2. Then 'VAT settings'
  3. Then 'VAT rates'
  4. Select 'Add'
  5. Enter the required details for the VAT code:
VAT code name:
Choose a unique name for the new VAT code. We recommend a name that all users will easily understand.
Description:
Explain what the VAT code is for.
What transactions will this be used for:
Sales, purchases, or both.
Status:
Set to active so that the VAT code can be used.
Export code:
Can remain blank.
  1. Next, set the VAT rate required.
If the VAT rate changes after a set date, this can be configured in the ‘applicable from’ field.
  1. Finally, in the reporting section, you configure how transactions using the new code will be reported on your VAT return and other VAT reports.
VAT liability section:
Where should transactions using the new VAT code appear on the VAT account report?
Report label:
Set which of the 9 boxes on the VAT return the VAT code will populate.
Multiple labels can be set up for each VAT code.
Amount to include:
Set the portion of each transaction to be added to the VAT return. You can choose VAT amount only, VAT exclusive total or VAT inclusive total.
Transaction type:
is this amount for sales or purchases?

How did we do?

Authorising MTD for VAT

Populating your MTD for VAT return

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