Setting up VAT tracking and order types

Welcome to your guide on managing VAT and order types with Teya. This article explains how to turn on VAT tracking, set your standard VAT rules, and manage different rates for eat-in and takeaway orders. 

Enabling VAT handling

When you first set up your Teya account, you will have the option to turn on VAT tracking in the setup wizard. Once enabled, Teya applies your chosen VAT rates to every sale, ensuring your reports are ready for your VAT returns.

If you skipped this step during registration, you can turn it on at any time:

1. Open your settings: Tap the gear icon to open Settings.
2. Access VAT rules: Tap Enable VAT handling. Please note that this option is only visible if you are eligible to use it.
3. Enable the feature: Turn on Enable VAT handling and tap Save.

Note: If your business is not VAT-registered, leave VAT handling turned off. Your receipts and reports will simply not include a VAT breakdown.

Creating your VAT rules

In the UK, VAT rules often apply a 0% rate to specific takeaway items and a standard 20% rate for eat-in orders. Setting up VAT rules lets you manage these different rates automatically without having to create duplicate items in your menu.

To configure your rules:

1. Open your settings: Tap the gear icon to open Settings, then tap VAT rules.
2. Set your standard rates: Add the rates you use across your menu. Most merchants use 20% and 0%, while some also add a 5% rate for specific items.
3. Choose a default: Select a default VAT rate that every new item will automatically inherit.
4. Save your changes: Tap Save to apply your new rules.

Updating VAT on specific items

You might need to override your default VAT rate for certain products. If you imported your menu using AI, please review your items carefully before taking your first Payment, as the AI's initial VAT suggestions may need adjusting.

To change the rate on a single item:

1. Open your catalogue: Go to Settings and then Manage items.
2. Select the item: Tap the item you want to update to open its details.
3. Update the rate: Find the VAT field and select the correct rate.
4. Save your changes: Tap Save to finish.

Note: VAT compliance is your responsibility. Teya applies the rates you choose, but we cannot advise on which rate applies to specific goods. Please consult your accountant if you are unsure.

Setting up order types for eat-in and takeaway

If you sell food and drink, the same item might need a different VAT rate depending on whether the customer is eating in or taking their food away. Eat-in and Takeaway are included as preset order types. You can also create additional order types to suit your business.

By using order types, the cashier simply selects how the customer is dining at the start of the order, and Teya automatically applies the correct VAT and pricing.

To set up your order types:

1. Open the business portal/Teya App or Payments App: Go to Catalogue, then Order types in your Business Portal.

2. Choose the order types your business offers: Eat-in and Takeaway are available as preset options, and you can create additional order types if needed.

3. Once your order types are set up, go to VAT rules to apply the relevant VAT rate to each one. This allows you to use different VAT rules for different order types where needed.