VAT in the United Kingdom

In the United Kingdom, Value Added Tax (VAT) is levied by the HMRC on the goods or services provided by registered businesses. ccording to HMRC, VAT is a tax that is charged on most goods and services that VAT registered businesses provide in the UK. It is also charged on goods and some services that are imported from countries within and outside the European Union (EU).

You need to create a new organisation in Zoho Invoice and choose the UK edition to make use of this feature.

VAT Settings

If your business is registered for VAT, you will be able to enter all your details and set up VAT in Zoho Invoice. You can find all your details in the VAT Registration Certificate you’ve received from HMRC.

To configure VAT in Zoho Invoice:

• Go to Settings > VAT > VAT Settings.
• Select Yes if you are a registered business under Is your business registered for VAT?.

• Enter the Country Code and the 9 digit VAT Registration Number provided by the HMRC.
• Mark the option Enable trade with contacts outside United Kingdom if you supply or import goods from other countries. Enabling this option handles the Reverse Charge Mechanism and Acquisition Tax in Zoho Invoice. This will be recorded in the European Commission (EC) Sales List Report which will be available in the Taxes section under Reports.
• Mark the option Enable trading of goods between Northern Ireland and the European Union (NI Protocol) if your business is located in Northern Ireland and you trade with businesses located in the EU.
• Mark the option My business is registered for VAT MOSS if you are a registered supplier of digital services to EU Non VAT Registered Customers. Learn More.

Adding New VAT Rate

To create or add a new Tax rate, kindly follow the below mentioned steps:

• Navigate to Gear icon > VAT.
• Select the VAT Rates tab.
• Click on +New VAT.
• In the new VAT rate form,
  • Enter the VAT Name, i.e: Austrian VAT or Belgium Reduced VAT.
  • The VAT Rate(%) for the EU member country.
  • Select the country from the EU Member State drop-down provided.
• Click on Save.

Edit VAT Rate

To edit an existing VAT rate, kindly follow the below mentioned steps:

• Click on the Gear icon found on the top right hand side corner of the screen and click on More Settings. Click on VAT.
• Select the VAT Rates tab.
• In the Edit VAT screen, edit the desired fields such as VAT Name, Rate, EU Member State.
• Click to Save the edited VAT.

Delete VAT Rate

To delete an existing VAT, kindly follow the below mentioned steps:

• Click on the Gear icon found on the top right hand side corner of the screen and click on More Settings. Click on VAT.
• Select the VAT Rates tab.
• Scroll over the desired row and click on the delete icon (trash bin). Confirmation pop-up screen will double check your intention. Click to OK to Delete or Cancel to skip.

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