Value-Added Tax (VAT)

Codes for VAT: what do they mean? When should I use them? How do I use them?

Supplies fall into three categories for VAT: taxable supplies, exempt supplies and out-of-scope supplies.

In Agresso, each of these types of supplies carry a different vat code. The Agresso code PZ is used for taxable supplies that carry a zero rate. The Agresso code PS is used for taxable supplies that carry a 20% vat rate. The Agresso code PE is used for exempt supplies that carry a zero rate of VAT and the Agresso code PM is used for medically-exempt supplies that also carry a zero rate of VAT.

When you enter a product code in the requisition standard screen on the product line, it maps to an account code and to a VAT code. There are always exceptions to the mapping rule and therefore it can be changed by the requisitioner at any stage before the requisition is saved by replacing the existing tax code with the new one.