To define tax names:

1. Navigate to the Tax Codes and Rates window.

2. In the Tax Code field, enter the tax names VAT Goods and VAT Services in the first two records.

Use the tax name VAT Goods for all of your goods invoices. The goods VAT revenues are booked directly to your VAT revenue account.

Use the tax name VAT Services for all of your services invoices. The service VAT revenues are booked automatically to your reserve account—not to your regular VAT revenue account.

3. In the Tax Type field, select VAT from the list of values.

4. Assign the VAT Goods tax code an accounting flexfield that corresponds to your actual VAT account (your regular VAT revenue account).

5. Assign the VAT Services tax code an accounting flexfield that corresponds to your VAT reserve account.

6. Complete the rest of the fields according to your company's business practices.