# VAT \[Tax]

### VAT Application Hierarchy: Organization → Company → End User

The system supports VAT configuration at three levels:

1. **Organization level**
2. **Company level**
3. **End user level**

{% hint style="warning" %}
Each participant is charged **their own VAT rate if one exists**.\
If the participant does not have a VAT rate, the system uses the **Organization’s VAT rate** as the fallback.
{% endhint %}

***

### 1. Organization VAT Only

**Input values:**

* Organization VAT: *e.g., 21%*
* Company VAT: none
* End user VAT: none

**Application logic:**

* The company is charged using **21%** (the organization’s VAT rate).
* The end user is also charged using **21%** (the organization’s VAT rate).

**Result:**

* All transactions use the **Organization-level VAT**.

***

### 2. Organization VAT + Company VAT

**Input values:**

* Organization VAT: *e.g., 21%*
* Company VAT: *e.g., 18%*
* End user VAT: none

**Application logic:**

* The company is charged using **18%** (the company’s VAT rate overrides the organization’s rate).
* The end user is charged using **21%** (falls back to the organization’s VAT rate because the end user does not have its own rate).

**Result:**

* Company pays: **18% VAT**
* End user pays: **21% VAT**

***

### 3. All Three Levels Have VAT

**Input values:**

* Organization VAT: *e.g., 21%*
* Company VAT: *e.g., 18%*
* End user VAT: *e.g., 22%*

**Application logic:**

* The company is charged using **18%** (company-level VAT takes priority).
* The end user is charged using **22%** (end-user-level VAT takes priority).

**Result:**

* Company pays: **18% VAT**
* End user pays: **22% VAT**

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