> For the complete documentation index, see [llms.txt](https://faq.droam.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://faq.droam.com/menu/settings/vat.md).

# VAT

You can set a default VAT percentage to apply to all external transactions, with the flexibility to customize it for individual customers as needed.

**To update a customer's VAT percentage:**

1. Navigate to the **Companies** or **End Users** tab in the main Menu.
2. Select the relevant company/customer
3. In the **General** tab, navigate to **Billing Details** and click **Edit**.

<figure><img src="/files/aaAjnFeBaOY93rIldlSw" alt=""><figcaption></figcaption></figure>

4. Adjust the VAT percentage under **Billing Details**, or specify it when creating a new company.

<figure><img src="/files/4hMqOhDbRUOukJxNq8gO" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
**Important**

* VAT is calculated and added to the amount being refilled.
  * *For example, when a client refills a wallet, VAT is applied based on the set percentage.*

* **If VAT is set to 0%**, VAT will not be collected on any transaction or refill, and the system will not apply VAT to platform prices.
  * *For example, If the default VAT is 0%, prices will be shown without VAT, and no VAT will be charged on transactions.*
    {% endhint %}

{% hint style="success" %}
**VAT Application on Platform Prices**

* By default, all platform prices are displayed **excluding VAT**.
* Once VAT is configured in the **organization settings**, it is automatically applied to platform prices unless a different VAT percentage is specified for a specific company.
  {% endhint %}