diff --git a/app/Http/Controllers/Settings/VatSettingController.php b/app/Http/Controllers/Settings/VatSettingController.php
new file mode 100644
index 0000000..a575a33
--- /dev/null
+++ b/app/Http/Controllers/Settings/VatSettingController.php
@@ -0,0 +1,27 @@
+<?php
+
+namespace App\Http\Controllers\Settings;
+
+use App\Http\Controllers\Controller;
+use App\Models\Setting;
+use Illuminate\Http\Request;
+
+class VatSettingController extends Controller
+{
+    public function index()
+    {
+        $vatRate = Setting::get('vat_rate', '0');
+        return view('settings.vat', compact('vatRate'));
+    }
+
+    public function update(Request $request)
+    {
+        $validated = $request->validate([
+            'vat_rate' => ['required', 'numeric', 'min:0', 'max:100'],
+        ]);
+
+        Setting::set('vat_rate', (string) $validated['vat_rate']);
+
+        return response()->json(['message' => 'VAT rate saved.', 'vat_rate' => $validated['vat_rate']]);
+    }
+}
diff --git a/resources/views/settings/vat.blade.php b/resources/views/settings/vat.blade.php
new file mode 100644
index 0000000..ddbc76a
--- /dev/null
+++ b/resources/views/settings/vat.blade.php
@@ -0,0 +1,59 @@
+@extends('layouts.app')
+
+@section('title', 'Settings — VAT')
+
+@section('content')
+<div class="mb-5">
+    <h1 class="page-title">VAT Settings</h1>
+    <p class="page-subtitle">Set the global VAT rate applied to vatable items on supplier quotes.</p>
+</div>
+
+<div style="max-width:480px;">
+    <div style="background:white;border:1px solid #e2e8f0;border-radius:0.875rem;overflow:hidden;">
+        <div style="padding:1.25rem 1.5rem;border-bottom:1px solid #e2e8f0;background:#f8fafc;">
+            <div style="font-size:11px;font-weight:700;color:#64748b;text-transform:uppercase;letter-spacing:.05em;">VAT Configuration</div>
+        </div>
+        <div style="padding:1.5rem;">
+            <label style="display:block;font-size:12px;font-weight:600;color:#374151;margin-bottom:6px;">
+                VAT Rate (%)
+            </label>
+            <div style="display:flex;align-items:center;gap:10px;">
+                <input type="number" id="vat-rate-input" value="{{ $vatRate }}"
+                       min="0" max="100" step="0.01" placeholder="e.g. 10"
+                       style="width:160px;padding:9px 12px;border:1.5px solid #e2e8f0;border-radius:8px;font-size:14px;font-weight:600;outline:none;"
+                       onfocus="this.style.borderColor='#2563eb'" onblur="this.style.borderColor='#e2e8f0'">
+                <span style="font-size:14px;color:#64748b;font-weight:500;">%</span>
+            </div>
+            <p style="font-size:12px;color:#94a3b8;margin-top:8px;">
+                Enter 0 to disable VAT. Suppliers will see a VAT checkbox on each item when this is greater than 0.
+            </p>
+            <button onclick="saveVat()"
+                    style="margin-top:20px;padding:10px 24px;background:#2563eb;color:#fff;border:none;border-radius:8px;font-size:13px;font-weight:600;cursor:pointer;">
+                Save VAT Rate
+            </button>
+        </div>
+    </div>
+</div>
+
+<script>
+var CSRF = document.querySelector('meta[name="csrf-token"]').content;
+function saveVat() {
+    var rate = document.getElementById('vat-rate-input').value;
+    fetch('{{ route('settings.vat.update') }}', {
+        method: 'POST',
+        headers: { 'X-CSRF-TOKEN': CSRF, 'Accept': 'application/json', 'Content-Type': 'application/json' },
+        body: JSON.stringify({ vat_rate: rate })
+    }).then(function(r) {
+        return r.json().then(function(body) {
+            if (!r.ok) return Promise.reject(body);
+            return body;
+        });
+    }).then(function() {
+        showToast('VAT rate saved.', 'success');
+    }).catch(function(err) {
+        var msg = (err.errors && err.errors.vat_rate) ? err.errors.vat_rate[0] : (err.message || 'Failed to save.');
+        showToast(msg, 'error');
+    });
+}
+</script>
+@endsection
diff --git a/routes/web.php b/routes/web.php
index c739d1e..8aa6940 100644
--- a/routes/web.php
+++ b/routes/web.php
@@ -29,6 +29,7 @@ use App\Http\Controllers\Sales\SalesOrderController;
 use App\Http\Controllers\MailAccountController;
 use App\Http\Controllers\SettingsController;
 use App\Http\Controllers\Settings\ProjectSettingController;
+use App\Http\Controllers\Settings\VatSettingController;
 use App\Models\Settings\Location;
 use Illuminate\Support\Facades\Route;
 
@@ -163,6 +164,10 @@ Route::middleware(['auth', 'verified'])->group(function () {
         Route::post('settings/projects/companies/{company}/departments', [ProjectSettingController::class, 'storeDepartment'])->name('settings.projects.companies.departments.store');
         Route::patch('settings/projects/companies/{company}/departments/{department}', [ProjectSettingController::class, 'updateDepartment'])->name('settings.projects.companies.departments.update');
         Route::delete('settings/projects/companies/{company}/departments/{department}', [ProjectSettingController::class, 'destroyDepartment'])->name('settings.projects.companies.departments.destroy');
+
+        // VAT settings
+        Route::get('settings/vat',  [VatSettingController::class, 'index'])->name('settings.vat');
+        Route::post('settings/vat', [VatSettingController::class, 'update'])->name('settings.vat.update');
     });
 });