Record what a tax template means

ERPNext tax templates can be set up in many ways, so Onzli never assumes what a template means for VAT from its rate or name. You tell it once for each template, with a reason.

Why figures are held back

Until a template has a decision, the figures that use it are held back. The same happens if a template's rows change later: its decision is marked needs review and blocks again, so a change in ERPNext can never silently change a return.

Record a decision

1. Open the VAT preview (see VAT preview). The tax codes table lists each template with its status, and undecided: blocks where you still need to decide.
2. Choose Record treatment next to the template.
3. Choose the VAT treatment, and the specific kind if one is asked for. The treatments are listed below.
4. Write a reason in plain English. A minimum length applies, shown on the form.
5. Enter your authenticator code and choose Save decision.

The treatments

Treatment	Meaning
Standard rate (20%)	You charge 20% VAT on goods and services.
Reduced rate (5%)	You charge 5% VAT on specific eligible items.
Zero-rated (0%)	You charge 0% VAT, and can reclaim VAT on related purchases.
Exempt from VAT	No VAT is charged, and you cannot reclaim VAT on related expenses.
Outside the scope of UK VAT	The transactions sit entirely outside the UK VAT regime.
Reverse charge	The buyer accounts for both the purchase VAT and the sales VAT.

What a decision does and does not do

• It is recorded with your reason and kept in the audit trail.
• It is insert-only: a new decision replaces the old one for future calculations, and the old one is kept.
• It never changes ERPNext and never changes a return that has already been calculated. Recalculate the period to apply it.

If you are unsure which treatment a template should have, ask your accountant.