The hierarchy of VAT is as follows:

 

  • If Client is set to default, and Task/Part is set to Default, it will use the VAT set in the Preferences Menu.

 

  • If Client is set to default, and Task/Part has a VAT rate different from Default, it will use the Task/Part Rate.

 

  • If Client is set to a custom vat rate, and Task/Part has a custom VAT rate (or is default), the Client VAT rate is used, regardless of the other values, as this is an override at the lowest level. The most common reason to change a Client VAT is if they are zero-rated (for example, for a charity), in which situation you want all their prices changed. 
  • For example - If, the Client is not set to 'Default', so it's specific VAT rate (even though that is 'Standard') is overriding all the other values. Default is an important difference, as this is effectively "no value", allowing the other values to 'pass through' so to speak. So setting this client to 'Default' will allow the other rules to be applied.

 

  • So if nothing is set anywhere, the default value will be used everywhere.

 

  • If any Parts/Tasks have custom values, they will override the default on the ones they are set on (the others will still inherit the default).

 

  • If a Client has a VAT rate set (other than Default), it will override EVERYTHING.