Change a VAT Group Rate

VAT (Value Added Tax) groups control the VAT rates available in the system. While they are usually set at the beginning of use and left as is, there are cases when changes are needed, for example, when the country decides to raise or lower the tax rate of some or all goods and services.

To view and edit VAT group rates, go to Settings > General > VAT management.

  1. Under VAT groups, find the VAT group that you want to edit and select the pen button on the row. The Update VAT group dialogue opens.
  2. To edit the rate of the VAT group, edit the Percentage field.
  3. Edit the Title of the group if necessary, especially if the rate is reflected in it.
  4. Select an option for the Price update method depending on whether you want to update the item sales prices or keep the item sales prices the same.
  5. Select Save. The system starts processing the change. This may take a while, depending on the number of items affected (from a few minutes to a few hours).
Important: While the process is ongoing, both the old group with the original number of items in it and the new group with zero items are shown under VAT groups. Once the old group disappears from the list, the process is finished.
Important: The VAT percentages of items will change continuously during the process, so waiting until the process finishes is safer. Do not make any edits to the VAT groups during the process. Do not manually edit items during the process. Do not create any invoice rows (do sales) during the process.

Comparison of Price Update Methods

In this example, a medicine item used a VAT group with a 20% rate which is changed to 22%. The following tables will show the changes that happen when choosing one or the other method. Note that a medicine item is used as an example as it has the largest variety of extra fees available. Depending on your case, your items may only have core pricing options such as purchase price, markup, and selling price available and/or relevant.

Option "Update item sales price when VAT percentage changes"

Pricing property Before without VAT Before with VAT After without VAT After with VAT
VAT% 20% 20% 22% 22%
Purchase price 10 12 10 12.2
Markup 10% 10% 10% 10%
Selling price 11 13.2 11 13.42
Minimum price 1 1.2 1 1.22
Minimum charge 5 6 5 6.1
Handling fee *1 2 2.4 2 2.44
Handling fee for partial package *1 4 4.8 4 4.88
Injection fee 1.5 1.8 1.5 1.83
Alternative price *2 10.5 12.6 10.5

12.81

*1 Note that this assumes that the handling fees use the "Include fee into medicine price" method.

*2 Purchase price set as the price nominator with 5% markup.

Option "Keep item sales price the same"

Pricing property Before without VAT Before with VAT After without VAT After with VAT
VAT% 20% 20% 22% 22%
Purchase price 10 12 10 12.2
Markup 10% 10% 8.2% 8.2%
Selling price 11 13.2 10.82 13.2
Minimum price 1 1.2 0.98 1.20
Minimum charge 5 6 4.92 6
Handling fee *1 2 2.4 1.97 2.4
Handling fee for partial package *1 4 4.8 3.93 4.8
Injection fee 1.5 1.8 1.48 1.8
Alternative price *2 10.5 12.6 10.5

12.81

*1 Note that this assumes that the handling fees use the "Include fee into medicine price" method.

*2 Purchase price set as the price nominator with 5% markup.

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