VAT
Costs without VAT, a rate on what you buy and sell, and the VAT inside each order, behind one switch.
Last updated: 2026-09-17
The switch and who needs it
Settings has one switch, “I charge VAT”, and onboarding asks it once. Leave it off if you are not registered: prices stay as you type them and no rate appears anywhere. Turn it on and two default rates open under it, prefilled for your country. One is for what you buy, one for what you sell.
One price and one rate on what you buy
Every ingredient and supply keeps one price and the VAT rate inside it. Type the price with or without VAT and the app converts. An empty rate means your purchase default and zero means zero-rated. A scanned invoice that prints a rate passes it on. Recipe costs are then shown without VAT, so the tax is not counted as your margin.
Gross prices and the VAT inside an order
Selling prices stay what the customer pays. A product can carry its own rate, otherwise your sales default applies. An order shows “of which VAT” under its total and adds nothing on top. Margins on products, orders and analytics are taken on the price without VAT. A cake sold at 200 with 8 % inside is judged against 185.19, while revenue stays the cash that came in.
Not in the app
Three things VAT in Cookara does not do:
- Issue invoices or estimate a VAT return; it costs and prices, nothing more
- Put a rate on labour, overhead and extra costs; they carry no VAT in the cost
- Model US sales tax; the switch is for VAT and similar taxes inside the price
Common questions
Do I need the switch if I am not VAT registered?
No. Leave it off and nothing changes: one price per ingredient, no rates, no VAT line on orders. That is the right setting for most home bakers.
What happens to my prices when I turn it on?
Nothing moves. Every price you typed is read as including VAT at your purchase default, and costs are shown without it from then on. Set a rate on the ingredients that differ.
Which rate does an order line use?
A product’s own rate, frozen when the order was booked. Every other line, and any extra charge, uses your sales default at the time you look.