Choose VAT Codes & Status

VAT Codes determine the Rate of Tax applied.

VAT Status determines the VAT Codes that can be used in a Transaction.

If no VAT Registration number has been entered on the Customer/Supplier VAT window, this restricts the VAT Codes that can be used in a Transaction.

VAT and Currency

The VAT and Currency functions in Access Accounts work independently of each other, because VAT is based on the VAT Status of a Customer or Supplier, rather than the Currency of their Transactions.

Currency does not affect the VAT.

VAT Codes and Rates

VAT Codes and Rates are set up by the system, with a set of defaults, when Data sets are created.

Additional Codes and Rates can be added but they must either be flagged as a GB VAT or assigned one of the standard EU VAT 'types'.

VAT Status

There are 3 VAT Status that can be assigned to Customer and Supplier records:

GB VAT or Home Country Home tax as recorded in Home Defaults
EU State
Non-EU State

The function of the VAT Status is to determine the VAT Codes that can be used for transactions and to ensure that accurate correct information is saved and reported to HMRC.

Note: If a Customer or Supplier is flagged as Any Currency, then they can trade in any Currency, but the VAT implications are not influenced by the Currency being used - only the VAT Status controls this.

GB VAT (or Home Country Home tax)

This is the default and all transactions can use any codes that have GB VAT (Home Country Home tax) status (defaults are VAT Codes 0 to 8).

EU State

A Country must be selected from the pull down list on the VAT window on the Customer/Supplier record.

This is needed for the EC VAT reports and will assign the recognised Country Code to the Customer/Supplier and any transactions.

All current EU State Country records are set up by the system, although with Single Currency unlocks they cannot be accessed.

The default VAT Code used in Transactions will depend on whether or not you have entered a VAT Registration number in the VAT window:

If you have not entered one, the default will be U (Unregistered), but as alternatives you are limited to selecting 8 from the GB VAT range and T from EU State range.

If you have entered one, the default will be G (Goods and Services), but you can select any other VAT Code from both the GB VAT and EU State ranges.

Non EU State

A Country can be selected from the pull down list on the VAT window; on the Customer/Supplier record.

This list will contain the Non EU State Countries that have been set up.

The VAT Code default will be 0 (Zero Rated) on all Transactions. You can select any other VAT Code from the GB VAT range.

Where VAT Codes, Rates and Status can be set

VAT Codes, Rates and Status are set up in the following places within the system:

For the System as a whole	VAT Codes & Rates. These define the Codes that can be used in the system.
For the Sales and Purchase Ledgers	Individual Sales and Purchase Analysis records (unless they are a Bank, Stock or Discount Analysis).
Individual Customers and Suppliers	VAT Status (GB VAT, EU State or Non EU State). This determines the details that can be entered on the VAT window for this Customer/Supplier: Sales Analysis - which has a VAT Code. VAT Code - the default for this Customer/Supplier.
Customer Addresses Enables a different VAT Status to be given to each of the Sales ledger Customer Addresses.	VAT Status (GB VAT, EU State or Non EU State). This determines the details that can be entered on the VAT window for this Customer when the selected address is used as a Delivery address. See Destination VAT.
Nominal VAT Journals	The VAT Status can be changed (as on the Customer/Supplier records), so that transactions can be entered using the correct VAT Codes and Rates in all areas. Currency is relevant in this case.

Analysis Codes

Analysis records for Sales and Purchases must be set up for each Currency and can use all available VAT Codes – i.e. GB VAT Codes and EU State Codes.

However the VAT Code will only be taken from the Analysis record if it is valid for the VAT Status of the Customer or Supplier.

Note. If an Analysis Code with a VAT Code of 0 is used for a GB VAT Customer/Supplier, it will not be overwritten with 1, as 0 is a valid GB VAT Code.

Where Analysis Codes are referenced

The Analysis records (which have VAT Codes) can be referenced by:

The Customer or Supplier VAT window Analysis Code.
The Customer or Supplier Address Analysis Code.
Each Trading Currency which has a default Sales and Purchase Analysis Code.
Each Currency Rate which has a default Sales and Purchase Analysis Code.
Each Price Line in the Buying and Selling Prices for each Stock record which has a default Sales or Purchase Analysis Code.
Each Sub Analysis record which has a default Sales and Purchase Analysis Code.
Each Price Item record in SOP and POP which has a default Sales or Purchase Analysis Code.

Regardless of the Analysis Code selected, the VAT Code must always be valid for the VAT Status (GB VAT, EU State or Non EU State) of the Customer or Supplier.