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Definition

A VAT code (also called a tax code or tax rate) is the identifier for a specific tax configuration in an accounting system. It combines:
  • A tax rate (e.g. 21%)
  • A tax type (standard, reduced, exempt, reverse charge, etc.)
  • The associated ledger accounts for input/output VAT postings
VAT codes are system-defined in the accounting software. You retrieve them with the API and reference them by ID when creating invoices or journal entries.

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Purpose

  • Ensure the correct tax treatment is applied to each line.
  • Let the accounting software — or Chift — generate the correct VAT ledger entries automatically.
  • Provide consistent behavior across connectors even when underlying VAT mechanisms differ.

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Relationships

  • Referenced on invoice lines via tax_id.
  • Referenced on journal entry lines via tax_info.tax_code.
  • Some VAT codes are flagged withholding_tax: true — these can only be used at invoice header level, not on lines (see Spanish withholding taxes).
  • Some VAT codes are flagged reversed: true — used for reverse-charge scenarios (see Reversed VAT).

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Endpoints

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Key fields

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See also