VAT Codes

LogiPro assigns VAT codes to companies and contacts for invoice and VAT return puropses. This article lists the various VAT codes and their usages.

Default VAT Codes

  • T0 - Zero rated transactions (e.g. food staples such as bread, milk, etc., trains and bus travel)
  • T1 - Standard rated transactions – Currently 20%

Note: This is the default tax code for VAT registered companies.

  • T4 - Sale of goods to customers in the EC
  • T5 - Lower rated transactions – Currently 5%. (Electricity, Gas, Water to private customers)
  • T8 - Standard rated purchases from suppliers in EC
  • T9 - Transactions not involving VAT (for non VAT-registered businesses, payroll)

Note: This is the default tax code for non-vatable companies.

Any transactions posted with T9 do not appear on your VAT Return. All the others will typically appear unless the settings are changed.

Add Additional VAT Codes

To add an additional VAT code, click Admin > VAT Codes.

Click New.

Enter the new VAT code details.

Click OK. Your newly added code will be available in the VAT code dropdown lists.

Note: The VAT return will exclude transactions with a VAT code that is marked to be excluded from the VAT return.

LogiPro VAT Code Default Rules

  • The default VAT code for the property will default to the default VAT code of the company.
  • The default VAT code for the unit will default to the default VAT code of the property.

You can override the property/unit VAT code if you set you config setting "Allow properties and units to be set as VAT chargeable" under VAT tab in Admin > General Settings. Otherwise, the VAT code list is hidden at the property and unit level.

  • A Company can only be either T1 or T9 (T0 is no longer an option for Companies)
  • A T9 Company can only have T9 Properties and Units. Schedules of a T9 Company will not have a VAT code option
  • A T9 Property can only have T9 Units. Schedules of a T9 Property will not have a VAT code option
  • Anything under a Property (Units and Schedules) cannot have a higher VAT code than the Property VAT code
  • When changing the VAT code of a Company or Property to a LOWER VAT code, all entities under the Company/Property that have a higher VAT code than the new VAT code being set for the Company/Property will also be updated
  • When changing the VAT code of a Company or Property to a HIGHER VAT code, a prompt is displayed asking whether to also update all entities under the Company/Property. If Yes is selected, all entities under the Company/Property will have their VAT code reset to the same VAT code as the Company/Property

Set the Company/Partnership VAT Code

Set the Property VAT Code

Set the Unit VAT Code

Set the Schedule VAT Code

Click Property > Schedules tab, the Schedules window displays.

Click Add to add a schedule to a property. There is a new dropdown to select the VAT code for the schedule (If Company or Property are not T9) .

The list of schedules on the property window will display a new column for the selected VAT code.

  • It is mandatory to select a VAT code for the schedule.
  • The Schedule's VAT code can only be set to a value equal or less than the Property's VAT code.
  • The Schedule's VAT code cannot be set to non-VAT (T0/T9), if there are vatable units (T1) with unit distributions for the schedule.
  • It is also not possible to change a Unit to be vatable (T1), if the unit has a unit distribution in any non-vat schedule (T0/T9)

Set the Contact VAT Code

Purchase Invoices

The lowest VAT code between the Invoice's Company/Partnership, Contact, Property, Unit and Schedule is the VAT code used in the Purchase Invoice.

Sales Invoices

The VAT code is determined by the lowest VAT code between the Invoice's Company/Partnership, Property and Unit.

Cannot Edit VAT When Editing Posted Invoices

  • When editing the Schedule of a Posted Invoice (either by doing Schedule Allocation or by changing the Schedule), it is only possible to change or add schedule allocation to schedules that will keep the same VAT code on the Invoice.
  • T9 and T0 are considered the same in this case, so it is possible to select either when changing the Schedule on and Existing T0/T9 Invoice.
  • However, once the Invoices were included in a VAT Return, It is no  longer possible to edit the Schedule of a T0 Invoice to a T9 Schedule  (As T9 are not included in VAT Returns).
  • If you change the schedule of a T9 Invoice to a T0 Schedule, the next time a Tax Return is run, that Invoice will be included.
  • If the existing Invoice's VAT code was manually set to a specific VAT code, it is only possible to change the Schedule to a Schedule that will  keep the VAT level that was manually set. T0 and T9 are again both selectable for T9 or T0 manually set invoices, but they will display on the Invoice with the VAT code of the original Invoice.

 

Introduce in version 2018.5.16.4984 released on 28/5/2018 and updated in version 2026.1.14.9793