> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.invoice123.com/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# How to Add VAT Types?

Adding VAT types in Invoice123 is essential for compliance with tax regulations, providing transparency to customers regarding applicable taxes, and streamlining accounting and reporting processes. It enables accurate tracking of VAT amounts, facilitates tax calculations, and ensures proper record-keeping for financial reporting and tax filing purposes. 
 
### How to do it?
1. Select **SETTINGS** from the menu bar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/settings_1e7rkn9.png)
2. Select **TYPES OF VAT** in the sidebar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/types-of-vat_1v35sq6.png)
3. Add the desired **VAT** types 
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-12062_okvfy5.png)
||| VAT types can only be added by VAT payers if the VAT code is entered in the system

4. Confirm the settings by clicking **SAVE CHANGES**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-12065_jkx8o6.png)
| In the system it is possible to select all the VAT types specified by the VAT authorities, according to the classification provided. You can view it [here](https://saskaita123.lt/lt/blog/pvm-klasifikatoriu-lentele/)
| All the VAT types added in the settings can be used during the invoice writing process

5. VAT types can also be added and modified in the invoicing window
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-12072_1kp109s.png)