VAT basics

Concept

InkWell supports VAT-aware service and booking handling, but VAT responsibility remains with you as the studio or artist.

For VAT-registered studios, VAT treatment is configured at service level. In current InkWell flow, services are set as either:

• Zero-rated (0%)
• Standard-rated (20%)

When clients submit bookings, service VAT rates are captured in booking records so historical bookings remain consistent even if service configuration changes later.

Why it matters

Clear VAT setup reduces compliance risk and margin drift.

• Tattoo services are generally standard-rated in the UK.
• Incorrect service treatment can distort reported totals.
• Refund handling must stay aligned with original sale treatment.
• Reliable records make accountant review and filing easier.

VAT mistakes are usually configuration mistakes, not arithmetic mistakes.

How to configure it

1. Confirm your VAT position and service treatment rules with your accountant.
2. In Dashboard -> Settings -> Business, keep business and VAT details current.
3. In service setup, apply the correct VAT treatment per service.
4. If VAT registered, use the service VAT toggle for standard-rated (20%) services.
5. Review your service listings carefully before publishing.
6. Submit a test booking covering representative services.
7. Include refunds and payout records in your routine reconciliation process.

Use a written policy (for example, by service category) so your team applies rates consistently during service updates.

How to verify it worked

• Service VAT treatment is reviewed and applied consistently across all services.
• Test booking totals match your expected gross treatment.
• Refund activity is tracked and included in reconciliation checks.
• Supporting booking, refund, and payout records are retained for filing support.

Related guides: Service details and options, Payments, and Payouts and reconciliation.

Common mistakes

• Assuming one VAT treatment applies to all services.
• Applying standard rate by default without reviewing service type.
• Updating services without re-checking VAT treatment for new offerings.
• Inconsistent handling of refunds in month-end checks.
• Treating platform data as a replacement for professional tax advice.