VAT or GST for multiple branches
In case your organization has different branches in the UK for VAT or GST for multiple branches, with different VAT Registration Numbers (VAT Reg Nos.) for each branch, ERPNext allows you to automate tax (VAT/GST) computation branch-wise.
Step 1 – Update Branch-Wise Addresses
Enter every branch address in the Company Master with the proper VAT Reg No.
Ensure Customer and Supplier addresses also have:
- Proper County/State (Region)
- VAT Reg No. of the party (if registered).
Step 2 – Set up Region-Wise VAT Accounts (Optional)
In the Chart of Accounts, set up region-wise VAT accounts if necessary (Input VAT, Output VAT).
Then associate these accounts under VAT Settings (GST Settings in ERPNext) such that reports like VAT Return or GST Summary select the correct accounts.
Step 3 – Item-Wise VAT/GST Setup
- Create Item Tax Templates for VAT rates:
- Standard Rate (20%)
- Reduced Rate (5%)
- Zero Rate / Exempt
- Add the VAT accounts from Step 2 to these templates.
- Assign the appropriate Item Tax Template to each Item in the Item Master.
Step 4 – Inter-Branch & Cross-Border Classification
In ERPNext, classify transactions using Tax Categories:
- Intra-UK / Domestic: Customer and same region branch.
- Inter-Branch / Out-of-State: Different UK regions branches (if distinct VAT Reg No.).
- Cross-Border / Overseas: Export or reverse charge scenarios.
For cross-border types, activate settings such as Is Inter State or Reverse Charge based on ERPNext setup.
Step 5 – Set up VAT Templates (Sales & Purchase)
Make templates per category:
- Sales Taxes & Charges Template
- Purchase Taxes & Charges Template
Examples:
- UK Domestic VAT 20% Template > uses Domestic Tax Category, associated with Output VAT accounts.
- Overseas Reverse Charge Template > uses Overseas Category, associated with Reverse Charge VAT account.
Set only account heads. Leave rates as “0” in case you think ERPNext will retrieve rates from Item Tax Templates.
