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Hi All,
I was just wondering, is the any preference to setting up VAT code separately for sales and purchases versus setting up a single code and to configure this to cover both sale and purchase directions? I have seen some guides show one and some show another. Are there any criteria when deciding or any pros/cons of each approach?
This is for the UK
Many thanks
Hi EUH Syd,
One point for the "pro" side to have separate codes is the possibility to make an easier tax reconciliation.
Apart from that there is not much to consider apart from what is required from your tax law.
Personally, I would like to have more codes rather than bunching all together even if that would be perfectly fine.
That is because it just gives you an additional option analyzing transactions.
Whether that is really needed or not is a different question but having this additional 'option' might be worth separating the codes.
Best regards,
Ludwig
Thanks Ludwig, a very helpful reply.
I agree with Ludwig, also just to add, you can use same code for PUR and SALES side, however, this is not possible to use for use tax and exempt scenario, you need to have separate code for that.
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