If you're using v30 or above follow our alternative create or amend a tax code article.

TIP: You can find details of the default tax code settings in our articles:

• Default tax codes - v27.1 and above - UK
• Default tax codes - v27.1 and above - Ireland

Create or edit a tax code

1. On the menu bar Goto Settings, select Configuration then click Tax Codes.
2. Select the required tax code and click Edit.
3. Complete the Edit Tax Code window as follows:
   
   

   Rate	Enter the required percentage. For example, to set up a 5% VAT rate, enter 5.00 in this box.    If you select the EC Code check box, the Rate box becomes inactive.
   Include in VAT return	To include transactions with this tax code in the VAT Return, select this checkbox.
   Invoice Payment fees	Select to apply the VAT reverse charge to bank payments received via Stripe for Invoice Payments automatically.
   Reverse Charge	Only use this for the sale or purchase of items that fall under the remit of carousel fraud. For example, mobile phones. Don't use it for standard reverse charge transactions.
   Flat Rate Capital Asset	Select if using the Flat Rate VAT scheme and use the tax code for capital assets.
   Enable EC Code or EC Code	Select to flag the tax code as an EC tax code.  Then from the drop-down lists, choose the relevant options.
   Link To	This option is only available for EC purchase tax codes.  If this tax code is to record notional VAT, choose the required tax code you want to link to. Notional VAT calculates using the rate of the code you link to.
   Description	Enter a description for the tax code.

4. Click OK then click Apply.
5. Click Close then if prompted to save the changes, click No.

• How to change the non-vatable tax code