How do I edit VAT rates?

Summary

This article explains how to change the rates of V.A.T. in Platinum, with an emphasis on UK rates.

Details

Go to " Reports & Settings Maintenance Options System Administrator Platinum Settings".

There are currently 4 rates of V.A.T. that can be used. They change only with government legislation.

As of 1st October 2021 the UK Government have introduced a 12.5% VAT rate for use in the leisure industries. To ensure your Platinum system has the ability to utilise an additional 5 rates of VAT please see Downloading a Platinum update.

Changing V.A.T. Rates

The following Settings can be amended:

• "V.A.T. Returns Frequency : (Quarterly/Monthly/Bi-monthly)"
• "V.A.T. Rates:"
  • Here you can update the V.A.T. rate percentages and descriptions. See below for More details).

To alter the tax rate of V.A.T. rate 1 move to the "V.A.T. Rates:" prompt and change the rate from 17.5% to 20.00%. This will increase the rate of V.A.T. by 2.5%.

The Fourth Vat rate is a "Spare" and as such you can amend the percentage as you wish. This is useful for example for a "Fuel" V.A.T. Rate.

Changing V.A.T. Rate Descriptions

It in possible, in the same option as above to change the individual descriptions on the V.A.T. rates should you wish to. This can be done as follows:

• On the "V.A.T. Rates" line you will see a "Description" heading, to get to this simply press <Enter> on the V.A.T. rate you wish to change the description on to get to its description. To change simply overtype with the required description.

It is recommended that the descriptions on the Main 3 V.A.T. rates remain unchanged.

The Fourth Vat rate is a "Spare" and as such you can amend the description as you wish. This is useful for example for a "Fuel" V.A.T. Rate.

Other Considerations

• If you have a custom Report Generator report (i.e. one that had been written for your needs) that calculates the V.A.T. manually, this report may need to be amended to reflect the new rate. The above WILL not update the report.

• If you have more than one company on your system (i.e. if there is more than one icon in the Platinum folder or on the Desktop to get you in to LIVE - e.g. not a test/training system) the above changes will have to be done for each company.

• If you use regular journals, you will need to recalculate V.A.T. amounts on any V.A.T. relevant nominal centres.

If you wish to default an account or stock item to a specific default rate of VAT you shoudl modify the relevant record. You are not advised to default an account to a specific rate of VAT unless they are an internal account or have special VAT rules e.g. are outside the UK.

See also

• How do I credit items sold at a previous V.A.T. rate?

Feedback

Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'

Keywords AND Misspellings

vat, vat1, v.a.t., rate, rates, value added tax, changing vat, hmrc, revenue, customs