VAT rules depend on where the charge originates: the customer, the job, labour, or the stock item being added. Service Geeni applies VAT automatically using the hierarchy below, to ensure correct invoicing in every scenario.
Rule Summary:
Job VAT
When you create a job, the VAT code defaults from the Customer record.
You can manually change the VAT code on the job if required.
The Job VAT code applies to:
Labour
Consumables
Miscellaneous charges.
(Everything except stock items)
Stock Item VAT
Stock items normally use the VAT code from the Stock Record.
This allows a single job to include items with mixed VAT rates (for example, 20% labour and a 5% boiler part).
When Job VAT Overrides Stock VAT
If the Job VAT code has either of these flags:
Exempt
Zero-Rated
The system will ignore the VAT code on the stock line.
The stock item will be charged no VAT.
This supports tax rules for customers outside the UK or customers that are VAT exempt.
Customer VAT Rules vs Stock VAT Rules
Service Geeni looks at both the rate and the exemption flag. Use this guide:
Customer Setting | Stock Item VAT | Result |
Customer standard-rated (20%) | Stock is reduced-rate (5%) | 5% applies |
Customer zero-rated (0%) – no exempt flag | Stock is 5% | 5% applies |
Customer Exempt (flag ticked) | Stock has any VAT rate | 0% VAT is applied |
This means:
Zero-Rated is not the same as Exempt.
The Exempt flag always wins