Vat Rate Change
To change the VAT rate you should use:
Main Menu -> General Applications -> Parameters -> Fields and Defaults -> VAT Settings. (Old Style)
| 1.. | VAT rate is 17.50 % |
| 2.. | VAT is currently Exclusive |
| 3.. | VAT scheme used 0 |
| 4.. | Irish 2/3rds Rule No |
| 5.. | Euro Value 0.000000 |
| 6.. | End |
You should change option '1' to reflect the NEW Vat/Tax Rate - in this example the VAT rate is reduced to 15%.
| 1.. | VAT rate is 15.00 % |
| 2.. | VAT is currently Exclusive |
If HMG increases the VAT rate to 20% in Jan 2011 then you should set these to be:
| 1.. | VAT rate is 20.00 % |
| 2.. | VAT is currently Exclusive |
If you are running the August 2010 version of Premvet (03.02.04), or later,
then you can automate this process - will cover changing from/to any VAT Rate.
at 1am Jan 4 (Press RETURN)
vet -p vat17 "-F XX -T YY" (Press RETURN)
^D (Press CRTL and d)
"-F 17.5 -T 20" for going from 17.5% to 20%.
You can add the 'above' any time between now and the 1st January.
This will automatically change the Stock and AP VAT items as well.
The bottom of the screen shows the various Tax/VAT bands - you should also make sure the new tax rate is listed here.
Using the example where the new VAT rate is 20%, if 20% is listed you do not need to do anything, if it's not add it.
Note: Band 'A' 0.00 is for Zero rated items do not alter it.
The table should resemble:
| A.. | 0.00 |
| B.. | 17.50 |
| C.. | 15.00 |
| D.. | 20.00 |
| E.. | 0.00 |
| F.. | 0.00 |
Again, if the VAT rate changes - DO NOT OVERWRITE ANY EXISTING FIGURES. Keep the existing figures, it does not matter where the VAT rate appears it must be there and once entered should NOT be changed.
How do I change the VAT/Tax rate on Stock cards.
For new stock items the percentage listed as the Default will be used. For existing items there is a menu option:
Main Menu -> Stock -> Utilities -> Validation -> Alter VAT Rate. (Old Style)
You will be asked the following questions:
Contine Yes / No | |
Enter VAT rate to change FROM |
Enter here the rate you want to change FROM as of November 2008, you want to change FROM 17.5%. From January 2010, you want to change FROM 15%. |
Enter VAT rate to change TO |
Enter here the rate to change to, as of November 2008, you want to change TO 15% (or to 17.5 from jan 2010). |
Confirm changing VAT rate from 17.50 to 15.00 Yes / No
| This is the last question before the system will do the change. |
All items marked 17.5% (or 15%) will be changed to 15% (or 17.5).
There is a Report Generator report 'XXvat' that normally is used to list all items NOT at 17.5% - you may want to alter this to reflect the new VAT rate.
How do I change the VAT/Tax rate on Automatic Pricing cards.
For new AP items the percentage listed as the Default will be used. For existing items there is a menu option:
Main Menu -> Automatic Pricing -> End of Year/Price -> Change VAT Rate. (Old Style)
You will be asked the following questions:
Contine Yes / No | |
Enter VAT rate to change FROM | Enter here the rate you want to change FROM, as of November 2008, you want to change FROM 17.5%. |
Enter VAT rate to change TO | Enter here the rate to change to, as of November 2008, you want to change TO 15%. |
Confirm changing VAT rate from 17.50 to 15.00 Yes / No
| This is the last question before the system will do the change. |
All items maked 17.5% will be changed to 15%.
There is a Report Generator report 'XXvat' that normally is used to list all items NOT at 17.5% - you may want to alter this to reflect the new VAT rate.
Notes on Vat/Tax Change
- There are NO automatic routines for this procedure.
- It does not matter if the 'End of Period' is done prior to the change over.
- Historic figures will NOT be affected.
- The above examples use VAT the same procedure can be used for GST.
- Bad Debt write off will split out the work at the old rate as well as the new rate.
- Invoices with VAT Breakdown will show work in both categories if appropriate.
- If you have any definition files where you have manually typed in the tax rate you should check this before the change over date.
- Make the changes on your play area first to allow you to test the procedure before doing it 'for real'.
VAT Changeover - possible problems
How do I credit a VAT amount?
(HMRC Special Rule 3 - Optional)There is no straight forward way to credit just a VAT amount. If this is required we would suggest one of two ways:
- Create an UnPriced AP Item
- Edit the line and adjust the VAT content.
or
- Enable 'Ask for Fees' on Text entries
- Switch on 'Show VAT Amount'
Use whatever method suits you.
As there is no legal requirement to show VAT on Retail receipts, you may want to setup a definition file as a simple way to generate some paperwork for the client. Farm invoices will include the VAT credits.
How do I see the VAT Amount of a line.
Depending on access permissions, use one of the following:
- From the clinical screen, 'L'ist, 'V'at, enter start date
- Switch one (or more) screen to default to VAT.
See FAQ for details, you want to change option 8 to Yes. Log in/out to take affect. - Use the clinical 'E'dit option to show the amount.
How do I credit goods covered with a different VAT Rate.
There is no straight forward way of doing this.
If you think this will be an issue you could create a Branch Stock File, (say branch 8), have a terminal that defaults to this branch, use this terminal to handle the credit then switch terminal back.
This procedure could also be used to handle Farm work carried out prior to the 1st December but written up afterwards.
Please contact support if you would like this setup for you.
Cash Accounting
If Cash Accounting is enabled, goods supplied and paid for at the time are not a problem. If the client had goods supplied before the switch over date (1st Dec) and pays AFTER then the VAT due will be the OLD rate.
We would suggest you enable 'Ask VAT Amount' (Parameters, Fields & Defaults, Option 4 = Yes) and do manual calculations.