Value Added Tax Code

Value Added Tax (VAT) and Goods and Services Tax (GST) codes are used throughout the system to indicate how the system should calculate VAT or GST.  When you enter invoices or customer orders, you enter the appropriate VAT or GST code for each order line, and the system calculates and accumulates amounts by VAT or GST code.

Separate VAT and GST codes are defined for Accounts Payable (Reference File category 230) and Accounts Receivable (Reference File category 308).  This avoids confusion between different VAT or GST rates used for customer orders and purchases.  Since you can enter VAT or GST codes for each line, you can apply different codes to the same invoice.