diff --git a/db/migrate/20180228070102_change_invoices_vat_rate_type.rb b/db/migrate/20180228070102_change_invoices_vat_rate_type.rb
new file mode 100644
index 000000000..2c0790a18
--- /dev/null
+++ b/db/migrate/20180228070102_change_invoices_vat_rate_type.rb
@@ -0,0 +1,5 @@
+class ChangeInvoicesVatRateType < ActiveRecord::Migration
+  def change
+    change_column :invoices, :vat_rate, :decimal, precision: 4, scale: 3
+  end
+end
diff --git a/db/structure.sql b/db/structure.sql
index cb47a50c0..3f890fcd9 100644
--- a/db/structure.sql
+++ b/db/structure.sql
@@ -1127,7 +1127,7 @@ CREATE TABLE invoices (
     currency character varying NOT NULL,
     description character varying,
     reference_no character varying,
-    vat_rate numeric(10,2) NOT NULL,
+    vat_rate numeric(4,3) NOT NULL,
     paid_at timestamp without time zone,
     seller_id integer,
     seller_name character varying NOT NULL,
@@ -5117,3 +5117,5 @@ INSERT INTO schema_migrations (version) VALUES ('20180228055259');
 
 INSERT INTO schema_migrations (version) VALUES ('20180228064342');
 
+INSERT INTO schema_migrations (version) VALUES ('20180228070102');
+