Set up VAT for your sales

Transcript

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1. 0:01

   In the last video, you created your first product category. Every product also needs to know which VAT to charge, and a new company has none yet, so now we add one.

2. 0:20

   Go to System, Apps Settings, Accounts, Sales Taxes. This list holds the VAT rates you charge your customers. On a new company it starts empty. Click Add Tax to create one.

3. 0:33

   Give the tax a name you will recognise later, like VAT ten percent, and enter the rate: ten.

4. 0:40

   Choose the account the VAT you collect is posted to. Every new company comes with Sales VAT Payable for exactly this, so the tax you owe is always kept apart from your income.

5. 0:51

   Choose whether your prices already include VAT. We pick exclusive, so the VAT is added on top of each price.

6. 0:59

   Click Save. VAT ten percent now appears in the list, ready to use.

7. 1:06

   Your VAT is ready. Each product you create chooses its VAT, and invoices then work out the tax by themselves. The next video is: Add your first product. Thank you for watching.