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VATextract automatically assigns the correct VAT code to each line item based on its VAT rate and your accounting software—saving you from manually selecting codes during bookkeeping.

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How It Works

1

Invoice Processed

When an invoice is processed, the VAT rate for each line item is extracted via OCR.
2

Rate Matched

The extracted rate is matched to the closest standard UK VAT rate (20%, 5%, 0%, Exempt, or Outside Scope).
3

Code Assigned

The appropriate VAT code for your accounting software is automatically assigned to each line item.
VAT codes appear in the Line Items tab of each invoice and are included in all exports (Excel, CSV, clipboard).

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Supported Accounting Software

VATextract maps VAT rates to the correct codes for the following platforms:
Sage uses T-codes for VAT classification.
VAT RateCodeDescription
20%T1Standard rate
5%T5Reduced rate
0%T0Zero rated
ExemptT2Exempt supply
Outside ScopeT9Outside scope of VAT

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Smart Rate Matching

VATextract uses intelligent matching to handle extracted VAT rates that aren’t exact:
Extracted RateMatched ToReason
19.8% – 22%20% (Standard)Within tolerance of standard rate
4% – 6%5% (Reduced)Within tolerance of reduced rate
-0.5% – 0.5%0% (Zero)Near-zero rate
This accounts for minor rounding differences in OCR extraction.

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Line Items with VAT Codes

Each line item in an exported invoice includes the VAT code alongside other fields: 
{
  "description": "Professional Services",
  "quantity": 10,
  "unitPrice": 100.00,
  "amount": 1000.00,
  "vatRate": 20,
  "vatCode": "T1",
  "vatAmount": 200.00
}

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Where VAT Codes Appear

Line Items Tab

VAT codes are displayed in the Line Items table when reviewing an invoice.

Excel/CSV Export

VAT codes are included as a column in all spreadsheet exports.

Clipboard Copy

Copying line items includes the VAT code column ready for pasting into your accounting software.

Airtable Sync

VAT codes are synced to your Airtable line items table.