Tax codes indicate the rate of tax to be paid on goods and services. In the UK and Ireland, the tax on goods and services is called VAT. For example, the rates in the UK are as follows:
| Rate | % of VAT | What the rate applies to |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced rate | 5% | Some goods and services, eg children’s car seats and home energy |
| Zero rate | 0% | Zero-rated goods and services, eg most food and children’s clothes |
1. Click the Administrator Settings icon on the home screen.
2. Click Financial.
3. Click Tax Codes.
4. Click New.
5. Fill in the tax code information as required
6. Click Save.
7. Click on INACTIVE or ACTIVE to change status.
8. Repeat the process for all remaining tax codes