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 an optional VAT group and the default VAT group by checking their checkbox.
Click “Save” to create the VAT Group.
What the Optional VAT group checkbox is
The Optional VAT group checkbox, when editing or creating a VAT Group, marks a VAT group as an “optional VAT”.
When a VAT group is marked as Optional. It is not always automatically applied. Instead, it becomes a choice that can be offered to the technician during the Work order (WO) completion process.
If the optional VAT option is set for VAT selection in WO completion settings for the job type in the portal, the technician will have the choice to select which VAT group applies when completing a work order of that type in the field service app.
This is useful when:
Sometimes the VAT is 0%, sometimes it is standard, or
The VAT percentage changes depending on a rule that cannot be fully automated.
Examples: Belgium (BE)
Renovation or works on a building older than NN years → 6% VAT
Renovation or works on a more recent building → 21% VAT
In this case, you might:Link a normal (default) VAT group to the customer.
Create one or more Optional VAT groups (e.g., 6% for old buildings).
At WO completion in the field service app, if the optional VAT option is set for the Job type, the technician is able choose which VAT applies based on the building’s age. (The default VAT group, or the VAT group linked to the customer, is selected by default during WO completion.)
How Optional VAT interacts with the customer’s VAT group
If a customer has a VAT group linked to their account and Optional VAT groups are defined and available, and the optional VAT option is enabled in WO completion settings for the job type in the portal, then: if the technician chooses an Optional VAT during Work order (WO) completion in the field service app, the chosen Optional VAT group will override the VAT coming from the customer’s VAT group for that specific job.
So Optional VAT groups give flexibility at job level, even if the customer has a linked VAT group at master-data level.
Where the Optional VAT group is used in the system
The Optional VAT group is mainly used during the Work order (WO) completion process in the field service app. In the work order completion process, there will be the option to display the Optional VAT available, if it is enabled for the job type. It comes after the Installation/equipment status screen.
What the Default VAT group does
The Default VAT group represents the standard VAT group for a specific country. This means for each country; you must have at most one VAT group marked as Default. That default is considered the main or standard VAT group for that country.
When the system needs a “fallback” VAT group for a given country (for example, when a customer does not have a specific VAT group set on their account), it can use the default VAT group of the customer country. It gives the system a clear standard VAT rule per country, without needing to always choose manually.
Note: You cannot set more than one VAT group as the default for a country. When a new VAT group is marked as the default for that country, the previously set default VAT group is automatically removed from that status.
At the top of the VAT group page are three tabs labeled All, Active, and Archived.
All tab: The All tab shows every VAT group in the system, regardless of status. You see both active and archived VAT groups together in one grid. This is useful when you want a complete overview, e.g. to verify history, check which group was used before, or to quickly compare active vs archived records.
Active tab: The Active tab shows only VAT groups that are currently active (not archived). These are the VAT groups that can be selected and used on accounts, contracts, invoices, sales orders, work orders, etc.
Archive tab: The Archive tab shows only VAT groups that have been archived. These VAT groups are no longer meant to be used for new transactions, but they still exist for historical and reporting purposes. They may still appear on existing documents created earlier, but you generally cannot assign them as new defaults or use them for new accounts/invoices (depending on where they are used).
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.
Note : When you create a new VAT and set it as the default for a country, any existing default VAT for that same country is automatically unselected. The same logic applies when you edit an existing VAT: if you mark it as the default, the system will clear the previous default for that country so that only one default VAT remains.
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.
The default VAT group can be archived. If you archive a VAT group that is set as default, the system will not automatically assign a new default VAT group.