VAT relief that applies itself.
Track zero-rated, reduced, and exempt VAT on every quote line item. New build and disabled persons relief codes, plus a listed building marker for review, on every line. Mapping to Xero or QuickBooks is coming soon.
Per-line-item VAT codes. Full audit trail for HMRC. Accounting system mapping coming soon.
What VAT problem do trade businesses get wrong?
A customer needs an accessible bathroom. They have a disability certificate. The installation is zero-rated. Your quote charges 20% VAT because whoever built it did not know the relief applied. The customer pays more than they should. You have to issue a credit note and re-invoice.
Or the opposite: you zero-rate a supply that should be standard-rated because a new build project turned out to be a conversion. HMRC corrects you at the next VAT return. Either way, the error was avoidable with the right system.
IBIOS puts the VAT relief decision at the point of quoting — where the project context is known — and records the correct treatment on every line. Carrying it through to your accounting software is coming soon.
VAT codes built into IBIOS
VAT treatment codes covering the common scenarios for UK trade bathrooms, from standard showroom sales to zero-rated disabled adaptations.
new_build
New Build
Zero-rating for the construction of new dwellings by a VAT-registered builder. Supply-only goods are standard-rated, so check the treatment of each job with your accountant.
listed_building
Listed Building
Marks work on listed buildings so it can be reviewed. Since October 2012 most approved alterations to listed buildings are standard-rated, so check the VAT treatment with your accountant before applying any relief.
disabled_persons
Disabled Persons
Zero-rated supply of goods and services to disabled individuals for personal or domestic use. Includes accessible baths, showers, grab rails, and related installation.
standard
Standard Rate
20% VAT on standard supply of goods and services. Default for showroom sales and standard installation work.
zero
Zero Rate
Zero VAT for other qualifying zero-rated supplies not covered by specific relief codes. Mapping to the general zero-rate code in Xero and QuickBooks is coming soon.
exempt
Exempt
Applies to supplies that fall outside the scope of VAT entirely. Recorded for completeness and audit purposes but no VAT charged or recoverable.
From quote line item to accounting entry
The VAT relief flow in IBIOS has three steps, all of which happen without leaving the quoting workflow.
Step 1 — Apply relief code at line item level
When building a quote, select the appropriate VAT code for each line item. For disabled persons supplies, IBIOS prompts for a self-declaration or supporting evidence reference before allowing the zero rate to be applied.
Step 2 — Quote calculates correct totals
The quote total reflects the correct VAT treatment per line. Mixed-rate quotes show a VAT breakdown by rate. The customer-facing quote document displays VAT correctly, including any zero-rated lines clearly labelled.
Step 3 — Accounting system receives correct VAT rate IDs (coming soon)
Coming soon: when accounting sync launches, each invoice line pushed to Xero or QuickBooks will carry the mapped VAT rate ID for that platform, so there will be no reclassification by your bookkeeper.
Why should VAT relief be built into quoting?
Right VAT treatment without manual lookup
Staff select the appropriate relief code when building a quote. IBIOS applies the correct rate and flags any missing supporting documentation — no VAT manual required.
Per-line-item accuracy
A single job can have items at different rates. Supply-only items at standard rate alongside zero-rated new-build construction work. IBIOS handles mixed-rate quotes without any workarounds.
Mapping to Xero and QuickBooks (coming soon)
Coming soon: every relief code will map to a specific Xero or QBO VAT rate ID, so invoices pushed to accounting will carry the correct VAT treatment on every line — no reclassification needed by your bookkeeper.
Audit trail built in
Every VAT relief code applied is recorded with who applied it, when, and why. HMRC queries can be answered from IBIOS without searching paper files.
Questions about VAT relief automation
What is VAT relief for disabled customers?
Under UK VAT law, goods and services supplied to disabled people for their personal or domestic use can be zero-rated. This includes bathroom adaptations such as walk-in showers, grab rails, accessible baths, and related installation work. IBIOS tracks this with the disabled_persons VAT relief code, which applies zero VAT to the eligible line items. Automatic mapping to the matching Xero or QuickBooks zero-rate VAT code is coming soon.
How does IBIOS handle zero-rated construction work?
The construction of new dwellings by a VAT-registered builder is generally zero-rated, while supply-only goods are standard-rated. IBIOS tracks new-build work with the new_build VAT relief code. When applied to a quote or quote item, IBIOS sets the VAT rate to zero on the line item; check the treatment of each job with your accountant. Mapping to your accounting system’s zero-rated construction code is coming soon. Work on listed buildings uses a separate listed_building code, which marks the work so it can be reviewed: most approved alterations to listed buildings are standard-rated, so check with your accountant.
Can I apply different VAT codes per line item?
Yes. VAT relief in IBIOS is tracked at both the quote level and the individual line item level. A single quote can include items at standard rate, zero rate, and reduced rate simultaneously — for example, standard-rated supply-only items alongside zero-rated construction work on a new dwelling by a VAT-registered builder (check the treatment with your accountant). Each line item carries its own VAT code independently.
Will VAT relief sync to Xero or QuickBooks?
Coming soon. Accounting sync is not live yet. When it launches, IBIOS will map each VAT relief code to the corresponding Xero or QuickBooks VAT rate ID in your tenant configuration, so each invoice line pushed to your accounting system will carry the correct VAT rate ID. The mapping will be configurable if your accounting system uses custom VAT codes.
Does IBIOS support the VAT flat rate scheme?
IBIOS tracks VAT at the standard, reduced, zero, and exempt rates per line item. Flat rate scheme calculations are performed in your accounting system rather than in IBIOS — IBIOS provides the accurate underlying VAT treatment on each item so that your accounting software can apply your flat rate scheme correctly. This is the standard approach for businesses using Xero or QuickBooks with the flat rate scheme.
Is VAT relief tracking audit-ready?
Yes. IBIOS stores the VAT relief code, the applied rate, and the reason for relief on every quote item where relief has been applied. The audit trail records who applied the relief code, when, and against which quote or order. If HMRC queries a zero-rated supply, you can produce a complete paper trail from IBIOS showing the relief code applied, and the customer context — all from a single export.
What are all the VAT codes available in IBIOS?
IBIOS supports: standard (20%), reduced (5%), zero, exempt, new_build (zero-rated construction), listed_building (marks work on listed buildings for review; most approved alterations are standard-rated, so check with your accountant), and disabled_persons (zero-rated supply to disabled individuals). The new_build, listed_building, and disabled_persons codes prompt for the supporting evidence to be attached to the quote.
Which IBIOS product line includes VAT relief automation?
VAT relief automation is part of IBIOS Accounts. QuickBooks and Xero sync is coming soon. It is built for bathroom retailers and plumbers. See also: VAT relief on a disabled bathroom adaptation.
IBIOS (Integrated Business Intelligence & Operations System) is made by IBIOS Limited (NI743167), Northern Ireland. Access is by waiting list; there is no free trial.
The right VAT on every quote, automatically.
New build and disabled persons relief codes, a listed building review marker, and per-line-item VAT codes. Xero and QuickBooks mapping coming soon.