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Managing VAT Codes and Rates
VAT codes like ‘F’ or ‘VAT18’ are the labels that your accounting system or cash register uses to refer to those specific rates. Think of them as easy-to-remember codenames.
Go to Settings & Pref. > Financial Settings > VAT from the top menu, to access the Indigo Business' section dedicated to VAT codes.
To save you time, Indigo Business provides a list of default VAT codes linked to the standard rates that you can use in your postings. 👇
Default VAT codes in Indigo Business
Default VAT codes in Indigo Business
In the table below you can check the default VAT code's description along with its type, the applicable Rate (%), if it is refundable and to which boxes in the VAT Return form it is matched (VAT Amount Box, Amount Box).
Creating a VAT Code
In the VAT screen, besides checking out and selecting default VAT codes, you can also create as many custom VAT codes as needed to manage your business clearly and efficiently—while remaining compliant with the authorities.
To create a VAT code:
Select the ➕ Add button at the top left of the VAT grid.
The Add VAT side drawer will slide open. Fill in the mandatory fields for Code, Name, Rate and Type.
Tick or untick the Refundable box as needed.
Tick the Allow Direct VAT Posting checkbox if you need to use the VAT code in VAT journals.
This will automatically tick the Refundable checkbox if it hasn't been ticked yet.
Fill in the Amount Box Number and VAT Box Number fields to match the appropriate box in the VAT Return online form (below) and accessible here.
Select a value for the Activity Type and Trade Type dropdowns.
The Marker and Marker Descriptions
E.g. Insert '*' in Marker and 'Reverse Charge Rule has been applied' in Marker Description when applying Reverse Charge rule.
Tick the On Hold checkbox if you won’t be using the code anymore but can’t delete it due to bound transactions. Once ticked, it will no longer be available in any form within the system.
📋 Note
Once you place a VAT rate on hold, only new transactions will be affected by this change. Old transactions that had the VAT code assigned will be unaffected.
You can re-activate an on-hold VAT rate at any time.
Editing and Deleting a VAT Code
To Edit an existing VAT code:
Highlight the record in the grid by single clicking on it.
Click on the pencil icon ✏️ to open the right side drawer in Edit mode.
After making the required changes, make sure to click Save.
To Delete an existing VAT code:
Select the entry to be deleted.
Click on the trashcan icon 🗑️ to delete the record.
The grid will update in real time and the entry will no longer show in the list.
Note: Delete only works when there aren't any associated transactions or records.
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VAT Return in Indigo Business