VAT Codes

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.

How It Works

Invoice Processed

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

Rate Matched

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

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).

Supported Accounting Software

VATextract maps VAT rates to the correct codes for the following platforms:

Sage
Xero
QuickBooks
KashFlow
Generic

Sage uses T-codes for VAT classification.

VAT Rate	Code	Description
20%	`T1`	Standard rate
5%	`T5`	Reduced rate
0%	`T0`	Zero rated
Exempt	`T2`	Exempt supply
Outside Scope	`T9`	Outside scope of VAT

Xero uses separate codes for expenses and income.Expenses:

VAT Rate	Code
20%	`20% (VAT on Expenses)`
5%	`5% (VAT on Expenses)`
0%	`Zero Rated Expenses`
Exempt	`Exempt Expenses`
Outside Scope	`No VAT`

Income:

VAT Rate	Code
20%	`20% (VAT on Income)`
5%	`5% (VAT on Income)`
0%	`Zero Rated Income`
Exempt	`Exempt Income`
Outside Scope	`No VAT`

VAT Rate	Code	Description
20%	`20.0% S`	Standard rate
5%	`5.0% R`	Reduced rate
0%	`0.0% Z`	Zero rated
Exempt	`Exempt`	Exempt
Outside Scope	`No VAT`	Outside scope

VAT Rate	Code	Description
20%	`20%`	Standard rate
5%	`5%`	Reduced rate
0%	`0%`	Zero rated
Exempt	`0%`	Exempt (same as zero)
Outside Scope	`N/A`	Outside scope

If no specific software is selected, generic codes are used.

VAT Rate	Code	Description
20%	`SR`	Standard Rate
5%	`RR`	Reduced Rate
0%	`ZR`	Zero Rate
Exempt	`EX`	Exempt
Outside Scope	`OS`	Outside Scope

Smart Rate Matching

VATextract uses intelligent matching to handle extracted VAT rates that aren’t exact:

Extracted Rate	Matched To	Reason
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.

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
}

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.

Getting Started

Features

Integrations

How It Works

Supported Accounting Software

Smart Rate Matching

Line Items with VAT Codes

Where VAT Codes Appear

Line Items Tab

Excel/CSV Export

Clipboard Copy

Airtable Sync

​How It Works

​Supported Accounting Software

​Smart Rate Matching

​Line Items with VAT Codes

​Where VAT Codes Appear

Line Items Tab

Excel/CSV Export

Clipboard Copy

Airtable Sync

How It Works

Supported Accounting Software

Smart Rate Matching

Line Items with VAT Codes

Where VAT Codes Appear