1. Click on Configuration
  2. Click on Tables
  3. Locate the table 'VAT Rate' and click on it
  4. Click on Insert New Table Entry located at the top
  5. Enter the new rate

If you'd prefer to have the rate you wish to be added as the first entry in the table then you can do the following:
  1. Click on the current top entry in the table
  2. Click on Insert on the top toolbar
  3. Enter the new VAT rate
This will place the new rate at the top of the table and move the original entry down the list.

To use VAT on gifts:
  1. Open an existing gift or add a new gift and click on the Tax tab
  2. In the Value Added Tax section amend the Portion Subject to Tax, if required.
  3. Click on the Tax rate drop down list and select the relevant rate for the gift.
  • VAT only needs to be entered if the gift has a portion of the amount that should have VAT applied.
  • If VAT is not relevant for the gift then no action is required in the Value Added Tax section on the Tax tab.

This change in VAT Rate ends 01/01/2010 at which time the rate will revert to 17½%

For more information on VAT and VAT rates see the Directgov web site