I am a UK user.

Does anyone have advice ion how many VAT Codes we should use.

Currently the system I use has been set up with 4 VAT codes.

It uses 1 Standard Rate, 2 EU, 3 Outside EU and 0 Zero rate leaving the code blank seems to default to Out of Scope. There does not seem to be a code for exempt or non standard rates (e.g. domestic fuel). The codes do not differentiate between Inputs and Outputs.


I can cope with this with sales invoices and purchase invoices but nominal ledger transactions are really difficult to get on to the correct part of the VAT return.

The last time I used Sage I was using around 15 VAT codes.

Any advice is welcome.