How VAT is calculated
1
Choose VAT type for each invoice
Select the correct rate (e.g., standard or reduced) per line item before saving.
2
Verify exemptions and non-taxable lines
For exempt supplies, mark the line so totals are excluded from VAT liability.
3
Run the VAT report
Use VAT report to review period totals, VAT payable/receivable, and downloadable exports.
Common checks
- Make sure invoice dates fall within the selected VAT period.
- Confirm rounding settings to match your bookkeeping practice.
- If a refund/credit note is used, record it as a separate document so it offsets correctly.