How do I edit VAT rates?

Summary

This article explains how to change the rates of V.A.T. in Platinum.

Details

Go to "Systems" -> "Reports & Parameters" -> "Maintenance Options" -> "System Administrator" -> "V.A.T. Parameters".

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

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

IMPORTANT INFORMATION (Announced 24th November 2008) : 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 the following link

• http://www.hmrc.gov.uk/pbr2008/measure1.htm%7C.

SALES - 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).

PURCHASE - 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. With any December invoices, you can use the calculation buttons again.

The following parameters 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.

Example : To alter the tax rate of V.A.T. rate 1 move to the "V.A.T. Rates :" prompt and change the rate from 17.50% to 15%. This will lower the rate of V.A.T. by 2.5%

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 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.

• 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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Keywords AND Misspellings

VAT, V.A.T., rate, rates, Value added tax, changing VAT