In short
A single budget in Allfred doesn't have to use just one VAT rate — you can price different parts of it under different VAT rates.
For Agency work, the VAT rate is changed at the level of the whole budget item (the blue row), using the "Change VAT" button — not per individual row.
For External production, Media budget, and Royalties, you can set a different VAT rate for each individual row, using the "Enable multiple VATs" button — because each row there is also its own separate invoicing/expense line.
If a VAT rate you need isn't available in the dropdown, an admin needs to add it first under Workspace Settings → Financial → Rates. That's the source all VAT rates in budgets are pulled from.
Whatever VAT rates you use in the budget are automatically carried over into the invoice once you generate invoice items from that budget — you don't need to remember or re-enter which rate was used where.
When generating invoice items, you can group several budget items into a single invoice line only if they share the same VAT rate. Budget items with different VAT rates can't be merged into one invoice line.
Statistics in projects and reports are always shown as amounts excluding VAT. If you need to see VAT-inclusive values, use the separate Amount (VAT) column available in the listings.
Why would I need more than one VAT rate in a budget?
Agencies sometimes need to price different services or products within the same project under different statutory VAT rates — for example, when a project combines items that are taxed differently. Allfred lets you set this up directly in the budget, so the correct rates are already in place by the time you invoice, instead of having to adjust them manually later.
How to change the VAT rate for Agency work
VAT for Agency work is changed using the "Change VAT" button, located in the bottom-right corner of the section, next to the button used for setting repetitions or discount.
Important: the VAT rate for Agency work applies to the entire budget item (the whole blue row) — not to individual rows within it. If you have several rows/items listed under one work budget item, they all share the same VAT rate. If you need different VAT rates for different pieces of agency work, they need to be split into separate budget items.
If the VAT rate you need is missing from the dropdown, it hasn't been set up yet in your workspace. An admin needs to add it first:
Click the profile icon in the top right corner → Settings.
Go to Financial → VAT Rates.
Add the missing VAT rate here.
This is the source all VAT rates available in the budget (and invoicing) are pulled from — if a rate isn't listed here, it won't show up as an option anywhere else.
How to set multiple VAT rates for External production, Media budget, and Royalties
Unlike Agency work, these sections let you apply a different VAT rate to each individual row. This is possible because, in these sections, each row also functions as its own separate invoicing or expense line — unlike Agency work, which is always tied to the whole budget item.
To set this up:
Click the "Enable multiple VATs" button in the top-right corner of the section title, next to the fee, discount, and quantity buttons.
This opens a new VAT column where you can set a different rate for each row.
Based on the rates you select, Allfred automatically calculates all VAT amounts in the budget summary below.
How VAT rates carry over into invoicing
When you invoice a project and click "Generate from Budget Items" in step 3 of the invoicing process, Allfred automatically pulls in whichever VAT rates were used in the budget for each item — you don't need to remember or manually re-select which rate applies where. This applies the same way whether you're invoicing in your workspace currency or in a different one.
Can I combine several budget items into one invoice line?
Yes, but only if all of them share the same VAT rate. If the budget items you want to combine were priced under different VAT rates, Allfred keeps them as separate invoice lines — an invoice line can only carry a single VAT rate, so items with different rates can't be merged into one.
Can I change the VAT rate directly on the invoice, in step 3, instead of in the budget?
Yes. Allfred pre-fills the VAT rate based on the budget, but you can still change it to a different rate directly in step 3, at the invoice item level. If you do this, it's your responsibility (as the person issuing the invoice) to make sure the rate is correct if it now differs from what's in the budget — Allfred won't stop you from changing it, but the final rate on the invoice is whatever you confirm there.
What happens if I change the VAT rate in the budget after an invoice has already been issued?
Changing the VAT rate in the budget only affects future invoicing — it does not retroactively update any invoice that's already been issued. If the item hasn't been fully invoiced yet, the new rate will apply the next time you invoice the remaining part. To correct the VAT rate on an invoice that's already been issued, you need to edit that invoice directly (Edit invoice) — this action is only available to users with the Admin or CFO role.
Are project statistics and reports shown with or without VAT?
All statistics shown on projects and in reports are net amounts — i.e. excluding VAT. If you need to see the VAT-inclusive amount, look for the separate Amount (VAT) column available in the relevant listings, rather than the main statistics figures.