Difference between revisions of "How do I edit VAT rates?"

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== Summary ==
 
== Summary ==
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This article explains how to change the rates of V.A.T. in Platinum.
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This article explains how to change the rates of V.A.T. in Platinum, with an emphasis on UK rates.
  
 
== Details ==
 
== Details ==
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Go to "Systems" -> "Reports & Parameters" -> "Maintenance Options" -> "System Administrator" -> "V.A.T. Parameters".
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Go to {{PlatinumSettings}}.
  
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{{Note|text='''PLEASE NOTE :''' If you do not have a "Systems" option go directly to the "Reports & Parameters" option or refer to a person with higher access rights}}
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There are currently 4 rates of V.A.T. that can be used. They change only with government legislation.
  
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There are 4 rates of V.A.T. that can be used. They only change with government legislation.
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{{Warning|text=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 ==
 
== Changing V.A.T. Rates ==
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The following parameters can be amended:
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The following Settings can be amended:
  
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*{{DataPrompt|V.A.T. Returns Frequency : ('''Q'''uarterly/'''M'''onthly/'''B'''i-monthly)}}
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*{{DataPrompt|V.A.T. Returns Frequency : ('''Q'''uarterly/'''M'''onthly/'''B'''i-monthly)}}
 
*{{DataPrompt|V.A.T. Rates:}}
 
*{{DataPrompt|V.A.T. Rates:}}
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** Here you can update the V.A.T. rate percentages and descriptions.
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** Here you can update the V.A.T. rate percentages and descriptions. See [[How do I edit VAT rates?#Changing V.A.T. Rate Descriptions|below]] for More details).
  
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{{Example|text='''Example :''' To alter the tax rate of V.A.T. rate 1 move to the {{DataPrompt|V.A.T. Rates :}} prompt and change the rate from 17.50% to 15%. This will lower the rate of V.A.T. by 2.5%}}
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{{Example|text=To alter the tax rate of V.A.T. rate 1 move to the {{DataPrompt|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%.}}
  
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== December 2008 Changes ==
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{{Tip|text=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.}}
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{{Note|text='''DO NOT APPLY ANY CHANGES TO YOUR SYSTEM UNTIL START OF BUSINESS ON 1ST DECEMBER 2008'''. You must finish all your sales invoicing for November BEFORE you change the V.A.T. rates, and you MUST NOT raise any sales invoices for December until you have changed the V.A.T. rates. Manually entered purchase invoices are not affected, but '''motorcycle, caravan and car dealers must be very careful about Vat qualifying or commercial part exchanges or purchases to ensure that they get the correct rate of V.A.T.'''.}}
 
  
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=== United Kingdom Changes ===
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== Changing V.A.T. Rate Descriptions ==
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{{Warning|title=IMPORTANT INFORMATION|text=(Announced 24th November 2008)
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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:
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*The UK Government has announced that the V.A.T rate will be changing from 1st December 2008 from 17.5% to 15% and will remain at this rate until 31st December 2009. For more information visit the official page on the government website by clicking [http://www.hmrc.gov.uk/pbr2008/measure1.htm here].}}
 
  
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{{Warning|title=SALES|text=
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*On the {{DataPrompt|V.A.T. Rates}} line you will see a {{DataPrompt|Description}} heading, to get to this simply press {{KeyPress|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.
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*Because of this announcement, you must change your main V.A.T. Rate either at close of business on 30th November, or '''BEFORE''' you invoice anything in December. This will ensure that the goods that you sell have the correct amount of V.A.T. charged. Most of you will have your sale or retail prices stored excluding any V.A.T., so when you sell items on the system, they will be cheaper than the price on the label (if you have prices on labels).}}
 
  
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{{Warning|title=PURCHASE|text=
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{{Note|text=It is recommended that the descriptions on the Main 3 V.A.T. rates remain unchanged.}}
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*Remember that you will still be receiving and entering purchase invoices and receipts dated November after December 1st, that will have V.A.T. at 17.5% - these should be entered in the main rate, which will display 15% after the change below, and the '''V.A.T. element MUST be entered manually''' so that it agrees with the invoice that you have received. The system will warn you that the Vat amount you are posting is outside its permitted limits - check that you have entered the figure that is on the invoice or that you intended, and then click {{Button|Continue}}. With any December invoices, you can use the calculation buttons again.}}
 
  
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=== Republic Of Ireland Changes ===
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{{Tip|text=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.}}
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{{Warning|title=IMPORTANT INFORMATION|text=(Announced 14th October 2008)
 
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*The Irish Government has announced that the top rate of V.A.T will be changing from 1st December 2008 from 21% to 21.5%. For more information visit the official page on the government website by clicking [http://www.revenue.ie here].}}
 
  
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{{Warning|title=SALES|text=
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== Other Considerations ==
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*Because of this announcement, you must change your main V.A.T. Rate either at close of business on 30th November, or '''BEFORE''' you invoice anything in December. This will ensure that the goods that you sell have the correct amount of V.A.T. charged. Most of you will have your sale or retail prices stored excluding any V.A.T., so when you sell items on the system, they will be cheaper than the price on the label (if you have prices on labels).}}
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* 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.
  
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{{Warning|title=PURCHASE|text=
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* 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.
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*Remember that you will still be receiving and entering purchase invoices and receipts dated November after December 1st, that will have V.A.T. at 21% - these should be entered in the main rate, which will display 21.5% after the change below, and the '''V.A.T. element MUST be entered manually''' so that it agrees with the invoice that you have received. The system will warn you that the Vat amount you are posting is outside its permitted limits - check that you have entered the figure that is on the invoice or that you intended, and then click {{Button|Continue}}. With any December invoices, you can use the calculation buttons again.}}
 
  
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== Other Considerations ==
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* If you use regular journals, you will need to recalculate V.A.T. amounts on any V.A.T. relevant nominal centres.
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* 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 will need to be amended to reflect the new rate. The above WILL not update the report. Please call our software support for further help.  
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{{Tip|If you wish to default an account or stock item to a specific default rate of VAT you should 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.}}
  
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*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.
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== See also ==
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* [[How do I credit items sold at a previous V.A.T. rate?]]
  
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{{KB_Tags|VAT, V.A.T., rate, rates, Value added tax, changing VAT}}{{KB_SL}}{{KB_NL}}{{FAQ}}{{ZN_Admin}}
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{{KB_Tags|vat, vat1, v.a.t., rate, rates, value added tax, changing vat, hmrc, revenue, customs}}
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{{How}}{{KB_NL}}{{KB_SL}}{{ZN_Admin}}

Latest revision as of 05:30, 1 October 2021

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 should 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


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