If your business makes sales and purchases, you're probably very familiar with the concept of including VAT on the transactions you conduct with your customers and suppliers, and you know how important it is to track these amounts carefully.
Accounting allows you to define different VAT codes to track different taxes.
Each VAT code represents a particular tax that is used to calculate VAT on your transactions. You'll set up VAT codes using the VAT Code List window, which can be found by choosing VAT Codes from the Lists menu.
Whenever you enter a transaction that should be taxed, you'll assign a specific code to each line item in the transaction. The VAT rate for that VAT code then will be multiplied by the amount of the line item to determine your VAT amount.
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