VAT Hierarchy

The VAT rate is determined based on the following rules, in order of priority:

  1. Default Settings:

    • If both the Client and Task/Part are set to "Default," the VAT rate from the Preferences Menu will be used.

  2. Task/Part-Specific VAT:

    • If the Client is set to "Default" but a Task/Part has a custom VAT rate, that rate will apply to the specific Task/Part.

  3. Client-Specific VAT (Overrides All):

    • If the Client has a VAT rate set (other than "Default"), it will override any other VAT settings, including Task/Part rates.

    • This is useful for cases like zero-rated clients (e.g., charities) where all their prices need to reflect a specific VAT rate.

  4. Understanding 'Default':

    • When a Client is set to "Default," it allows VAT rates from Tasks/Parts to apply normally.

    • However, if a Client has a specific VAT rate (even if it matches the standard rate), it will override all other settings.

Summary:

  • If no VAT rate is set anywhere, the default from the Preferences Menu applies.

  • Task/Part VAT rates override the default, but only for the specific Task/Part.

  • A Client VAT rate (other than "Default") overrides everything.

This structure ensures that VAT is applied consistently while allowing flexibility for different clients and tasks. Let me know if you’d like any further refinements!