System Control VAT
Access Accounts provides very strong VAT audit trails; additionally, Access pioneered the printing of a VAT Report which exactly duplicates the format required of the HMRC VAT Return: this avoids all doubt over which figures go where. Access Accounts provides a comprehensive solution to VAT administration.
VAT Calculation
The calculation used to determine Home Net Values has been amended to reduce rounding discrepancies on multiple line items. The calculation will now use rounding to 5 decimal places, but the displayed value will be the value decimal place of your database.
Examples:
Calculation based at 2dp rounding
Price | Quantity | Value | VAT Rate % | VAT calc at 2dp | Displayed VAT |
18.25 | 16 | 292.00 | 17.5 | 51.10 | 51.10 |
8.04 | 106 | 852.24 | 17.5 | 149.14 | 149.14 |
0.26 | 1426 | 370.76 | 17.5 | 64.88 | 64.88 |
Totals: |
| 1515.00 |
| 265.12 | 265.12 |
Total VAT value is 265.12, however 1515.00 * 17.5% = 265.13 so there is a discrepancy of 0.01
Calculation based on 5dp rounding
Price | Quantity | Value | VAT Rate % | VAT calc at 5dp | Displayed VAT |
18.25 | 16 | 292.00 | 17.5 | 51.10000 | 51.10 |
8.04 | 106 | 852.24 | 17.5 | 149.14200 | 149.14 |
0.26 | 1426 | 370.76 | 17.5 | 64.88300 | 64.88 |
Totals: |
| 1515.00 |
| 265.125 | 265.13 |
No discrepancy
Currency Order with 2dp rounding
Exchange Rate: GBP 1 = EUR 0.89765; Order is for quantity 2343 at EUR 0.23 (Currency Net = 538.89)
Home Price | Home Net | VAT Rate % | Home VAT | Currency VAT |
0.26 | 609.18 | 17.5 | 106.61 | 95.70 |
However. EUR 538.89 * 17.5% = 94.31 so there is a discrepancy of 1.39
Currency Order with 5dp rounding
Exchange Rate: GBP 1 = EUR 0.89765; Order is for quantity 2343 at EUR 0.23 (Currency Net = 538.89)
Home Price | Home Net | VAT Rate % | Home VAT | Currency VAT |
0.25623 | 600.33 | 17.5 | 105.06 | 94.31 |
No discrepancy
VAT Return
Print VAT Returns based on Period or Date Range
Access Accounts enables you to print and update the VAT Returns based on period or date range.
It is a requirement of HMRC to be able to produce a VAT Return based on a ‘standard tax period’, which is a three month period ending on the last day of the month.
The default is to produce a VAT Return based on the accounting periods you have selected.
This can be changed to enable you to print and update the VAT Returns based on a date range.
If a your company’s accounting periods are different to the HMRC standard tax periods, you should elect to use the date range method.
Reporting Methods are set in System Control at VAT Reporting Method
Online Submission of a VAT Report
You are able to submit your VAT Report online using XML functionality. Refer to VAT Return for details.
HMRC Online Gateway Facilities
HMRC online gateway facilities enable you to send the VAT Return and EC Sales report online to HMRC. You are also able to check for message responses and download and print message responses from HMRC.
VAT Utilities
Two VAT Utilities help make changes in the VAT rate easier and less inconvenient. They are found at VAT Utilities.
Recalculate Batched Transactions - this utility enables you to change the VAT Rate on batched transactions.
Update VAT % on Transactions - this utility enables you to upgrade enquiries, documents and reports so that the correct VAT% is displayed.
Reverse Charge Accounting for VAT
The application has been updated to permit Reverse Charge Accounting for VAT for businesses trading in mobile telephones and computer chips in line with a new legislation introduced by HMRC. This legislation came into force on 1 June 2007.
EU VAT
There are two types of EU VAT reports available:-
EC Sales Report -this prints and enables you to submit the E.C. Sales List report online to HMRC.
SSD This module allows entry of Commodity Codes and details within Stock/Price/Resource records so that the E.C. Intrastat reports for Dispatches and Arrivals can be printed.