I have a category of expense that I want to add to the Chart of Accounts. The expenses in this category can attract VAT at 23%, 13.5% or 0%. I see that the Chart of Accounts entry asks me to specify a VAT type, but when I add a line item to a Supplier invoice, I can specify the VAT rate there. So what does the VAT Type field in the Chart of Accounts entries do? Is it simply a default VAT rate for that item?
That VAT rate in the chart of accounts is for a feature that is not yet available – you can leave it blank if you wish. It doesn’t affect the VAT rates used when creating invoices/bills – you still select which VAT rate is applicable.