Change a contact's VAT setting
This article explains how to change the VAT setting for a particular contact in FreeAgent.
For example, you may need to start or stop charging a customer VAT because of where they are.
Please note:
- Changing the VAT setting will not affect any invoices which you have already marked as sent. It will only affect invoices, or recurring invoices, that are in draft at the moment and any invoices that you send in the future.
- If you sometimes need to charge a customer VAT and sometimes don't need to charge them VAT, you could set up two different contacts for that customer and set one to always charge VAT and one to never charge VAT.
Select the ‘Contacts’ tab at the top of the screen.
Select 'Edit' on the appropriate contact.
Scroll down to the 'Invoicing Options' section and choose the relevant option from the 'Charge VAT' drop-down menu. You can choose to either:
- only charge VAT if the contact is based in the United Kingdom VAT area (this area includes the Isle of Man)
- always charge VAT
- never charge VAT
Select 'Save Changes' at the bottom of the screen to complete the process.