Not Reported VAT (Tax) Rates

In releases prior to 1606 debtor and creditor cccounts included a field called VAT not Reported with values Yes or No. If this was set to Yes, the VAT Rate flagged as Not Reported would be automatically set by the invoicing functions.

For this feature to work correctly it was assumed that one (and only one) VAT Rate had been defined as Not Reported.

From version 1606, the field in debtor and creditor accounts has been renamed to Not Reported VAT Rate and the options available are --Not Set-- (i.e. the same as the previous option No) or a selection of VAT Rates that have been flagged as Not Reported.

As well as ensuring that accounts can only be flagged as Not Reported if a Not Reported VAT Rate exists, it also enables more than one Not Reported rate to be used in different accounts.

The rules for determining which VAT Rate an invoice line will use are as follows:

• If the debtor or creditor account has specified a Not Reported Rate this is always used and cannot be amended in the document.

• Otherwise, if the invoice line is using an Item, its VAT Rate is displayed and may be changed by the user.

• Otherwise, if the VAT Rate has not been defined by an Item, the Default VAT Rate is displayed and may be changed by the user.

• Otherwise, the first VAT Rate alphabetically is displayed and may be changed by the user.