VAT Rate - Which one do I use to code invoices?

VAT Rate - Which one do I use to code invoices?

The VAT rate used to code an invoice must match that on the face of the invoice.

If the rate is 20%, then use PS - Purchase Standard Rated

For 0% VAT, then use PZ - Purchase Zero Rated apart from advertising (NB Cycle helmets are zero rated).

For Advertising where there is no VAT use PA - Purchase Advertising

If there is no VAT but the goods are exempt or the rate is E use PE.

If the supplier is too small to be registered for VAT (if there is no VAT number on the invoice, then this applies) then use PO - Purchase Outside the Scope.

If the supplier address is outside the UK - the tax code should be PR - Purchases Reverse Charge.

If an invoice has lines with different VAT rates, then these need to be split in the invoice coding and the appropriate rate applied to each line.



Royal Holloway, University of London logo