VAT Countries is a selection on the customer and supplier card, from which it is applied to sales and purchase documents. For each VAT country, it is possible to fill in a revenue account and VAT code on the item class or item card. As a result, when placing an item on a sales document row, the system looks up the revenue account and VAT code corresponding to the VAT country on the document from the item card or item class. The same applies when creating a purchase invoice from a receipt, provided the VAT code field is not filled in on the supplier card.

VAT Countries can be added and existing ones modified/deleted at: Settings → Book Settings → VAT Countries

The content of the Sorted field determines the position of that option in the dropdown on the customer card and other selections.

VAT Countries appear as a dropdown on the customer card, supplier card, documents, and reports.:

On the item card and item class card, a revenue account and VAT code can be added for each VAT country. When placing an item on a document, the item card fields take priority; if those are empty, the item class fields are used. The recommendation is to fill these in at the item class level, and on the item itself only for exceptions.

Item class::

Item:

The customer's VAT country is European Union. When the customer is placed on an invoice, the VAT country on the invoice is filled in automatically. When an item is placed on the invoice, the VAT code and Account corresponding to the invoice's VAT country are applied from the item card. If these are absent on the item card, they are taken from the item class, as shown in the image below.