How to Invoice a Job with Zero VAT

In some cases, you may need to issue an invoice with zero VAT, such as for Motability customers or VAT-exempt services. This guide outlines the steps to ensure VAT-free invoicing is applied correctly while maintaining accurate records.

If the change is temporary, instructions for reverting the setting are also provided.

How to Invoice with Zero VAT

1. Access the Customer Profile:

   • Navigate to Customer > Profiles.

2. Modify the Service Profile:

   • In the customer's profile, go to the Service Profile section.

3. Enable VAT-Free Status:

   • Locate the VAT Free option (commonly used for VAT-exempt customers such as Motability).
   • Tick the checkbox to apply a VAT-free status to the customer's transactions.

4. Issue the Invoice:

   • Proceed with creating and issuing the invoice as usual. The system will automatically apply zero VAT to the job.

Important Notes

• Temporary Changes:

  • If this is a temporary adjustment, ensure that you deselect the VAT-Free checkbox once the invoice is completed to avoid inadvertently applying VAT-free status to future transactions.

• Audit Trail:

  • Ensure any VAT-free transactions are appropriately documented to maintain compliance with tax regulations.

Scenarios Where This Process is Useful

• Motability Customers: Handling VAT-exempt transactions for eligible Motability customers.
• VAT-Exempt Jobs: Specific services or jobs exempt from VAT.