## Zoho Invoice — Product, features, payments, integrations, solutions, and help Index

Access the complete documentation index at:
https://www.zoho.com/au/invoice/llms.txt

Use this file to discover all available documentation pages before proceeding.

# VAT in Sales

VAT is included in both the sales and purchases for your business. There are different methods in which VAT is calculated on sales, according to the region and VAT treatment of your customers and vendors. In Zoho Invoice, VAT treatment of your contact is taken into account and the VAT associated with the item is automatically populated. Making it simple for your accounting purposes.

## Sales Within the UK

For creating a sales (Invoices, Estimates, Credit Notes) transaction that is within the United Kingdom,

*   Select the customer whose VAT treatment is for United Kingdom.
*   Add the item for which you are creating the sales transaction and select the VAT amount.

![VAT in Sales](/uk/invoice/help/images/vat/vat_invuk.png)

VAT treatment of your customer can be changed only for that estimate, invoice or the order you create. Click on the notification, select the VAT treatment you prefer and click on **Update**.

You can also set the VAT treatment as a permanent change by checking on the **Make it permanent?** box. ![Updating VAT Treatment](/uk/invoice/help/images/vat/vat_upd.png)

### Sales Outside the UK

For sales (Invoices, Estimates, Credit Notes) that are made outside the UK, you will be able to find the labels that will denote if its a **Goods** that is being sold or a **Service** that is being rendered. If a service is billed in the same invoice where an item is being sold outside the UK, then the service will be associated to the item and will be labeled **Service Associated to Goods**.

![Sales Outside UK](/uk/invoice/help/images/vat/vat_suk.png)

*   If the sale is made to an EU country, the sale will get recorded under **Total Value of goods you supplied to other EU countries** in the VAT return report.
*   If the sales is made to countries outside EU, it will get recorded under **Your total sales excluding VAT** in the VAT return report.

![VAT in Sales & Purchases](/uk/invoice/help/images/vat/vat_inveu.png)

### Sales to EU-VAT Registered Customers (NI Protocol)

If you’re a business in Northern Ireland and you are selling goods to a customer who is in the EU and is registered for VAT, then the VAT can be Zero-Rated or a Zero Rate (0%) VAT can be charged on your export. To do this, you’ll have to enable the NI protocol from VAT settings and select the VAT treatment as EU-VAT registered \[NI Protocol\] for the customer.

To enable the NI Protocol in your organisation:

*   Go to _Settings_ > _VAT_ > _VAT Settings_.
*   Mark the **Enable trading of goods between Northern Ireland and the European Union (NI Protocol)** checkbox.
*   Click **Save**.

![NI Protocol](/uk/invoice/help/images/vat/ni-protocol.png)