To allow for the 5% reduced VAT rate you will need to complete the following steps. Note that in this article we have recommended creating a new VAT code rather than adapting an existing one as this may not be suitable for all businesses.
Note: that you will need access to the System area of Dimensions to complete this process. We have recommended duplicating an existing code as this should contain the correct settings for the code and will easily identify the code for you.
Go to System, VAT Rates (ribbon menu) or System Control, VAT, VAT Rates (classic/module menu)
Find VAT code 2 in the list and select Duplicate (this will ensure the settings for the code are correct)
Set the Code as 2A and name it to be easily identifiable, such as Reduced rate Jul 20 to Jan 21
Check you have the following setup:
Code type: General
Fully Recoverable
5.00% rate
GB VAT
Select the VAT Return button and ensure that the following settings are in place for the VAT return:
|
|
|
|
|
VAT box | Sales | Purchase | Nominal Debit | Nominal Credit |
1 VAT due in this period on Sales and other outputs | Y |
|
| Y |
2 VAT due on Acquisitions |
|
|
|
|
4 VAT reclaimed in this period on Purchase and other inputs |
| Y | Y |
|
6 Total value of of sales and all other outputs excluding any VAT | Y |
|
| Y |
7 Total value of purchase and all other inputs excluding any VAT |
| Y | Y |
|
8 Total value of EC supplies |
|
|
|
|
9 Total value of EC Acquisitions |
|
|
|
|
Ensure that the Exclude from VAT return box is not ticked.
You will now be able to use this VAT code for sales and purchases in Access Dimensions.