Client Query - Tax Settings if not VAT Registered

Problem/Question

I am not VAT registered, how do I prevent KCC adding VAT on to sales orders?

Solution

If you are not VAT registered, the best way to initially set up your system is to set the tax rate defined against your stock items as Exempt. If you are importing your stock via the data import feature, you should use Tax Code 3 on the import file.

If you have already set up your system and it is incorrectly charging VAT will need to do the following steps:
  1. Open the [Stock Item] screen.
  2. Filter to display all of your products and green select the entire table.
  3. Click Actions and select Update Stock Items.
    1. In the popup, select the Exempt tax rate.
    2. Enable the toggle next to this setting.
    3. Scroll to the bottom of the popup and click OK.
If you have sales orders already on your system these will manually need to be amended by opening them individually, selecting the Additional tab and disabling the Calculate VAT toggle.

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