Define a fee type for “Value added tax (V.A.T/VAT)” in Maintaining Fees (refer sample below).

Define a default condition for the V.A.T fee in Maintaining Conditions (refer sample below).

Add/link the V.A.T fee created to the required commission/charge fee type, which is subject to V.A.T.
Example: If Import LC Commission is subject to V.A.T, link the newly V.A.T fee type to LICX (Import LC Commission) (refer sample below).

Input an Import LC contract to generate “Import LC Commission” and its “V.A.T”. Check the “Settlement panel” for the Import Commission and VAT being generated (refer sample below)