Setting Up VAT Code Rules in Freightools
After VAT Codes are created, VAT Code Rules can be configured to automatically assign the correct VAT code to orders and invoices. These rules reduce manual selection by applying tax logic based on operational data.
VAT codes can be applied automatically according to:
- Activity type
- Specific activity
- Price detail
Bulk Upload Option
VAT Code Rules can also be imported in bulk by the technical team.
This is useful when:
- Implementing complex tax structures
- Migrating from another system
- Setting up many rules at once
Where to Find VAT Code Rules
Go to:
Accounting → VAT Code Rules
Click New VAT Code Rule.
How to Configure a Rule
1️⃣ VAT Code
Choose the VAT code that should be applied automatically.
2️⃣ Operation
Select whether the rule applies to:
- Buying
- Selling
This ensures the correct tax is applied depending on the transaction type.
3️⃣ Rule Level (What Triggers the VAT Code)
Decide at which level the rule should apply. You can base the rule on:
- Activity Type
- Activity (multi-select)
- Price Details (multi-select)
This allows very precise control.
For example, a specific VAT code can be applied only when certain services or charges are used.
4️⃣ Countries (Mandatory)
Select the countries where the rule should apply based on the partner’s country.
This field determines when the VAT code becomes relevant.
5️⃣ Countries From / Countries To (Optional)
Use these fields when VAT treatment depends on shipment flow, such as:
- Import vs. export
- Origin country vs. destination country
These fields allow further rule refinement when tax logic varies by trade direction.
6️⃣ Customer Classification (Optional)
If the rule applies only to certain customer groups:
- Select the relevant customer classification.
This ensures that only the specified group will receive this VAT treatment on their invoices.
How VAT Code Rules Work in Practice
Once configured:
- When creating orders and invoices, the system checks the rule conditions.
- Based on activity type, activity, price detail, partner country, and other criteria, the correct VAT code is applied automatically.
This reduces manual work and ensures consistent tax handling.
Recommended Setup Approach
- Create all required VAT codes first.
- Define rules for the most common scenarios.
- Add more specific rules based on activities or price details if needed.
- Use country and shipment direction fields to refine tax behavior for import/export flows.