What is a VAT Group?
A VAT Group in Wello is a configuration that defines a specific VAT (Value Added Tax) percentage or rate, along with its code, country, and description. It is used to manage how VAT is applied to invoices, sales orders, work orders, and other financial documents. Each VAT Group can be linked to entities such as accounts, contracts, sales orders, and work orders, ensuring the correct VAT rate and legal disclaimer is applied according to business and legal requirements.
How to Create a VAT Group
On the Wello portal, click Settings in the top right corner.
Select Setup account, then go to the VAT tab.
Click the “Add” button at the top of the VAT Group grid.
Fill in the Required Fields: such as Country, Code, Provide a name for the VAT Group, Enter the VAT percentage or rate (e.g., 18%), Enter the legal stipulation, Add a description if needed, Set the start date (required, defaults to today), Set the end date (required if you want to limit the VAT Group’s validity). You can also set this VAT Group as the default.
Click “Save” to create the VAT Group.
Legal Stipulation in a VAT Group
The legal stipulation in a VAT Group is a legal text that appear on invoices, sales orders whenever a specific VAT Group is applied. This text may be used to reference specific legal articles or exemptions.
The legal stipulation field is typically read-only on invoices. It is automatically populated to an invoice based on the VAT Group selected.
Where is a VAT Group Used?
VAT Groups are linked to customers, and all objects (Work orders, Contracts) created for those customers will used the VAT rate. If a VAT group is not linked to a customer the system will use the default VAT group set.
Technicians can also be allowed to select which VAT applies during work orders completion process. VAT groups can be archived or set with validity dates as needed.
VAT Groups are used in several places within Wello:
Invoices: When creating or editing invoices, you can select a VAT Group to determine the VAT rate applied. Note that the customer VAT group is used by default.
Sales Orders: VAT Groups are linked to sales order lines to apply the correct VAT.
Work Orders: VAT Groups can be assigned to work orders, affecting the VAT on related invoices.
Accounts/Contracts: You can assign a VAT Group at the customer account or contract level so that all related work orders inherit the correct VAT.
How to set a default VAT Group for an account.
Linking a VAT Group to an account means assigning a specific VAT Group (with its VAT rate, code, and legal stipulation) to a customer account. This ensures that all objects (invoices, sales orders, work orders, etc.) created for that account will automatically use the assigned VAT Group, unless overridden.
Go to the CRM menu on the navigation panel and select Accounts to open the Accounts page.
Use any of the available filters to search for the account you want to update.
In the results grid, select the account, click the three-dot menu, and choose Edit.
In the account details, scroll down to the Finance or Invoice Information section, there is a field for VAT Group.
Choose the appropriate VAT Group from the dropdown list. Only active VAT Groups will be available for selection.
The selected VAT Group will be used as the default for all invoices created for this account. You can still override the VAT Group at the document or line level if needed.
When creating a new account, you will also see the VAT Group field. Select the desired VAT Group before saving the new account.
How to Archive a VAT Group
Archiving a VAT Group is a controlled process to ensure all linked entities are handled properly
On the Wello portal, click Settings in the top right corner.
Select Setup account menu and select the VAT tab.
Click the archive (bin) icon next to the VAT Group you wish to archive.
The system checks for all entities (accounts, contracts, sales orders, work orders, invoices) linked to the VAT Group. For each entity, you can: Select a replacement VAT Group or Decide to keep the current VAT Group assigned for the entity’s lifetime.
Once all links are resolved, click “Finish” to complete the archive process.
Note: The archive process ensures that no entity is left without a valid VAT Group, and you are in full control of replacements.