Managing your agency's financial details is made easier with Allfred's features for setting VAT rates and accounting accounts. These settings are crucial for accurate billing and expense management.
How to Set VAT Rates
Create and edit a VAT Rate:
Navigate to 'Workspace Settings' by clicking on your profile icon and selecting 'Settings'.
Go to the 'Financial' tab
To add a new VAT rate, click on the '+ Add new VAT rate' button.
Input the new VAT percentage rate you require for your invoicing or expenses.
To edit an existing rate, click on the field with the amount, make the necessary adjustments, and ensure you save your changes by clicking the Update button
Setting a Default VAT Rate:
You can specify a default VAT rate that will automatically be applied to invoices and expenses.
Select the radio button next to the VAT rate you wish to set as default.
Deleting a VAT rate
Navigate to 'Workspace Settings' by clicking on your profile icon and selecting 'Settings'.
Go to the 'Financial' tab
Click on the Bin icon under Actions to delete the VAT rate.
Removing this VAT rate will keep past uses untouched, but you will not be able to use it in the future anymore
Configuring Accounting Accounts
Create and edit Accounting accounts:
Navigate to 'Workspace Settings' by clicking on your profile icon and selecting 'Settings'.
Go to the 'Financial' tab
Scroll down to Accounting Accounts.
To insert a new accounting account, use the '+ Add new accounting account' option.
Assign a number and title to the account that corresponds with your financial tracking system.
For modifications, click into the field with the number or title, make required changes and click 'Update' to save.
Deleting Accounting Account
Navigate to 'Workspace Settings' by clicking on your profile icon and selecting 'Settings'.
Go to the 'Financial' tab
Click on the Bin icon under Actions to delete the Accounting Account.
Removing this accounting account will keep past uses untouched, but you will not be able to use it in the future.
Reverse-Charge VAT for Cross-Border Invoicing
Reverse-charge VAT is not configured through VAT rates in Workspace Settings. It is determined automatically based on the client's Billing Address, and can be manually overridden per invoice when needed.
When does the "Reverse charge" option appear?
Allfred automatically detects when reverse-charge conditions apply. The "Reverse charge" checkbox becomes visible in Step 3 of the invoicing process only when both of the following are true for the invoice's Billing Address: the Billing Address country is different from the country of your workspace's legal entity, and the "Applies VAT" checkbox is unchecked on that Billing Address.
If these conditions are not met, the "Reverse charge" checkbox will not be shown at all, since it isn't relevant to that invoice.
Default behavior
When the conditions above are met, the "Reverse charge" checkbox is checked by default ✅, and the corresponding "Reverse charge" note is added to the invoice automatically. This covers the vast majority of cases.
When to manually uncheck it
In some situations, you may not want reverse-charge to apply even though the system enables it by default - for example, when there's a distinction between goods and services, or between an in-person and an online service (the tax treatment can differ between the two, and only one of them shifts the tax liability to the recipient). In these cases, you can simply uncheck the "Reverse charge" checkbox in Step 3 of the invoicing process before issuing the invoice.
👉 For more details on managing billing addresses, see: How can I change or edit the billing address on the invoice?