Setting Up VAT Codes in Freightools
VAT Codes define how tax is calculated on buying and selling transactions. Once configured, they can be selected in invoice lines and will affect both calculations and printouts.
Bulk Upload Option
VAT Codes can be uploaded in bulk by the technical team.
This is useful when:
- Migrating from another system
- Implementing multiple VAT structures
- Setting up complex tax environments
Bulk upload ensures accuracy and saves setup time.
Manual Creation of VAT Codes
To create a VAT code manually:
Go to:
Accounting → VAT Codes
Click New VAT Code.
Fields to Complete
1️⃣ Name
Enter a clear and descriptive name.
Examples:
- VAT 17%
- Zero VAT Export
- EU Reverse Charge
The name helps users easily identify the correct tax structure.
2️⃣ Country
Choose the country for which the VAT code is applicable.
In most cases, this will be the company’s registered country.
3️⃣ Code
Enter a short code.
This code:
- Appears on printouts
- Appears in the invoice order interface
- Helps users quickly identify the VAT structure
Keep it clear and consistent (for example: VAT17, VAT0, RC-EU).
4️⃣ Rate (%)
Enter the VAT percentage as numbers only.
Example:
- 17.00
- 0.00
- 20.00
Do not include the % symbol.
5️⃣ Selling and Buying Rates
If the VAT code is used for both selling and buying:
- Enter the relevant rate for selling.
- Enter the relevant rate for buying.
This allows flexibility when tax treatment differs between receivables and payables.
How VAT Codes Are Used
Once configured, VAT codes can be selected in:
- Selling invoice lines
- Buying invoice lines
- Financial reports
- Printouts
The system will automatically calculate VAT amounts based on the defined rate.
Recommended Setup Approach
- Define standard domestic VAT first.
- Add zero-rate and exempt codes if required.
- Clearly distinguish between selling and buying rates when necessary.
- Use consistent naming and coding to prevent user confusion.