If you're using v29 or below 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 Go to 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 Enable EC Code checkbox, 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 Import/Export Code	Select to flag the tax code as an import or export tax code.  The drop-down options for Sales/Purchase and Goods/Services become active.
   Link To	This option is only available for import/export codes when you select Purchases. 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.
   Override Link To tax code	Determines the VAT rate used to calculate notional VAT. If the VAT rate is different, select this checkbox and select the Tax code in the Link To drop-down box.
   Post EU withdrawal	Select for imports or exports as the UK has left the European Union.
   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