VAT Rates
The window comprises a record window and a list of the system UK VAT Rates and EC VAT Rates.
Contents |
VAT Rates record |
VAT Rates list |
VAT Rates ribbon |
Default VAT Rates |
Defaults function |
VAT Rates record
Also see the Partial Exemption VAT overview topic.
To use this feature you must have Security Profile access to VAT Rates.
Here you are able to specify the effect of each VAT Rate on the VAT Return, including specifying that the VAT Rate is Partially- or Non-recoverable.
When Inserting a new record, the Type drop-down allows you to choose between GB VAT or EC VAT, where GB VAT comprises Ordinary and Reverse Charge, and EC VAT comprises G, S, T, U, A, R, X, and Y types (see EC VAT Codes, below). Default is GB VAT - Ordinary.
The Use list allows you to choose to which transactions the VAT record applies. The list comprises Sales Invoice and Credit Note, Purchase Invoice and Credit Note, and General. Default is General.
The Recovery options allow you to specify how VAT is reported on the VAT Return. The options comprise Fully-, Partially-, and Non-recoverable. Default is Fully recoverable.
The Recovery options are not available when Type: EC VAT is selected.
If you select Partially recoverable, you should specify the Recovery Rate percentage and the Non-recoverable Update Account. On saving, you are prompted to enter the date from which this Recovery Rate is effective, and, if the date you enter is before Today, you are cautioned and the Recalculate Non-recoverable VAT Utility opens. The Recovery Rate drill button opens the Recovery Rates history for the record.
If you select Non-recoverable, you should specify the Non-recoverable Update Account.
For both Partially- and Non-recoverable, if no Update Account has been specified then the Non-recoverable VAT is posted back to the original account from the analysis.
VAT Rates list
The VAT Rate record tab-off list displays items matching any entered search criteria, where the default Search fields are Code, EC Type, and Description.
See below for more information on the Default VAT Rates included in a new database.
Code Column
All rates have a code: most of the UK VAT Rates are identified by numeric codes although letters can be used if this helps to indicate their use; EC VAT Rates are identified by letters.
You can print a list of the VAT rates by selecting the VAT Rate List report from the Access Crystal Reports menu.
It is essential that you ensure you fully understand the type of VAT Rate that you enter into Transactions, to ensure that your VAT Reports accurately reflect your business. If in any doubt, we recommend you consult HM Revenue & Customs. It is your responsibility to ensure that you report VAT accurately.
Rate
The Rate column shows the percentage associated with the Code (e.g. zero, 5%, 20%).
The rates for codes ‘0’ and ‘8’ will always be zero % and cannot be changed.
All other rates can be changed to any percentage between 0.01% and 99.99%.
In the American version, the Rates column heading becomes a menu button, which has two options, Show Rate Makeup and Define Headings. You should define the headings first and then use these to show the makeup of the Tax.
EC
All VAT rates applicable to EC transactions are identified by a code letter indicating their type and usage.
In the VAT Rates window:
If a letter appears in the EC column, this indicates the VAT rate is for EC tax.
If the EC column is blank, this indicates that the rate is a GB rate for UK VAT.
The initial set of EC VAT rates, created with the database, use the same Code to identify the rate as the EC type code. So the code will appear to be repeated in the EC column.
If you need to insert new rates:
You will be prompted to identify the type of rate by selecting GB VAT or EC VAT.
If you select EC VAT, you will then be prompted to select the EC VAT type appropriate to the rate.
Toolbar
Defaults
The Defaults option opens a dialog where you can specify the Default Home, EU, and Non-EU VAT Code for Credit VAT Journal, Debit VAT Journal, Sales Analysis, and Purchase Analysis. More information is available, below.
VAT Rates ribbon
Standard functionality (e.g. Print, searching) is described elsewhere in this Help system.
Duplicate
This function is provided so you can create a new VAT Rate based on another, existing record.
All non-unique fields are duplicated. You must enter a new Code before being able to save.
VAT Return
This opens a dialog where you can specify which VAT Boxes are updated by this VAT Code and by which transaction types (i.e. Sales, Purchase, Nominal Debit, Nominal Credit). On saving a new VAT Record, the system checks that at least one update VAT Return has been specified.
There is also an option to Exclude from VAT Return all transactions using the VAT Rate.
Default VAT Rates
When a new database is created, a number of default VAT Rates are automatically created.
With new databases, default VAT Rates (GB & EC VAT) are created that are configured to automatically update the System VAT Return. Where existing databases are upgraded, any VAT Rates in use will also be upgraded and retain their settings. New VAT Rates can be configured when required and there are additional options for Partially- and Non-Recoverable VAT. It is your responsibility to ensure that all Rates that you use are correct.
See also the Destination VAT and Partial Exemption VAT topics. See www.hmrc.gov.uk for current standard and reduced VAT Rates.
GB Vat
Code | Rate | EC | Description | Use |
0 | Zero | Ordinary | Zero rated | General |
1 | Standard | Ordinary |
| General |
2 | Reduced | Ordinary |
| General |
3 | Zero | Ordinary |
| General |
4 | Zero | Ordinary |
| General |
5 | Zero | Ordinary |
| General |
6 | Zero | Ordinary |
| General |
7 | Zero | Ordinary |
| General |
8 | Zero | Ordinary | Outside Scope of VAT | General |
10 |
| Ordinary | Zero Rated |
|
11 |
| Ordinary |
| General |
12 |
| Ordinary |
| General |
V |
| Reverse Charge | Reverse Charge Goods | General |
EC VAT
Code | Rate | EC | Description | Use |
G | Zero | EC VAT | Goods and Related Services | General |
S | Zero | EC VAT | Non-related Services | General |
A |
| EC VAT | Acquisitions of Goods and Related Services | General |
R |
| EC VAT | Purchases of Reverse Charge Services | General |
T |
| EC VAT | Non-Registered WITH Tax Rep | General |
U |
| EC VAT | Non-Registered with NO Tax Rep | General |
X |
| EC VAT | Reverse Charge VATable Service | General |
Y |
| EC VAT | Reverse Charge Non-VATable Service | General |
It is essential that you ensure you fully understand the type of VAT Rate that you enter into Transactions, to ensure that your VAT Reports accurately reflect your business. If in any doubt, we recommend you consult HM Revenue & Customs. It is your responsibility to ensure that you report VAT accurately.
Note: If tax is being charged by the Supplier, then it is entered as part of the net value of the transaction. It is not entered as VAT – VAT is the UK tax only.
Default VAT Rates and the VAT Return
The default VAT Rates are set to update the VAT Return as follows -
Code | VAT Box | Sales | Purchase | Nominal DR | Nominal CR | Exclude From VAT Return |
0 | 6 | y |
|
| y |
|
0 | 7 |
| y | y |
|
|
1 | 1 | y |
|
| y |
|
1 | 4 |
| y | y |
|
|
1 | 6 | y |
|
| y |
|
1 | 7 |
| y | y |
|
|
2 | 1 | y |
|
| y |
|
2 | 4 |
| y | y |
|
|
2 | 6 | y |
|
| y |
|
2 | 7 |
| y | y |
|
|
3 | 1 | y |
|
| y |
|
3 | 4 |
| y | y |
|
|
3 | 6 | y |
|
| y |
|
3 | 7 |
| y | y |
|
|
4 | 1 | y |
|
| y |
|
4 | 4 |
| y | y |
|
|
4 | 6 | y |
|
| y |
|
4 | 7 |
| y | y |
|
|
5 | 1 | y |
|
| y |
|
5 | 4 |
| y | y |
|
|
5 | 6 | y |
|
| y |
|
5 | 7 |
| y | y |
|
|
6 | 1 | y |
|
| y |
|
6 | 4 |
| y | y |
|
|
6 | 6 | y |
|
| y |
|
6 | 7 |
| y | y |
|
|
7 | 1 | y |
|
| y |
|
7 | 4 |
| y | y |
|
|
7 | 6 | y |
|
| y |
|
7 | 7 |
| y | y |
|
|
8 |
|
|
|
|
| y |
G | 1 | y |
|
| y |
|
G | 4 |
| y | y |
|
|
G | 6 | y |
|
| y |
|
G | 7 |
| y | y |
|
|
S | 6 | y |
|
| y |
|
S | 7 |
| y | y |
|
|
A | 1 | y |
|
| y |
|
A | 2 |
| y | y |
|
|
A | 4 |
| y | y |
|
|
A | 6 | y |
|
| y |
|
A | 7 |
| y | y |
|
|
A | 8 | y |
|
| y |
|
A | 9 |
| y | y |
|
|
R | 1 |
| y | y |
|
|
R | 4 |
| y | y |
|
|
R | 6 |
| y | y |
|
|
R | 7 |
| y | y |
|
|
T | 6 | y |
|
| y |
|
T | 7 |
| y | y |
|
|
T | 8 | y |
|
| y |
|
T | 9 |
| y | y |
|
|
U | 1 | y |
|
| y |
|
U | 4 |
| y | y |
|
|
U | 6 | y |
|
| y |
|
10 | 6 | y |
|
| y |
|
10 | 7 |
| y | y |
|
|
11 | 1 | y |
|
| y |
|
11 | 6 | y |
|
| y |
|
11 | 7 |
| y | y |
|
|
12 | 1 | y |
|
| y |
|
12 | 6 | y |
|
| y |
|
12 | 7 |
| y | y |
|
|
V | 1 |
| y | y |
|
|
V | 4 |
| y | y |
|
|
V | 6 | y |
|
|
|
|
V | 7 |
| y |
|
|
|
X | 1 |
| y | y |
|
|
X | 4 |
| y | y |
|
|
X | 6 | y | y | y |
|
|
X | 7 |
| y | y |
|
|
Y |
|
|
|
|
| y |
Defaults function (found on VAT Rates list toolbar)
There is an option to define the default VAT codes for VAT journals and for Analysis codes. This option is found by navigating to VAT Rates list and selecting the Defaults button from the toolbar. Selecting this button opens a dialog window where you are able to edit the Home, EU, and Non-EU VAT Codes for:
Credit VAT Journal - used when entering VAT Journals, recurring or otherwise
Debit VAT Journal - used when entering VAT Journals, recurring or otherwise
Sales Analysis - used when creating new sales analysis codes
Purchase Analysis - used when creating new purchase analysis codes
Each one defaults to VAT code 1, 0, G or A depending on the EU status of the currency selected but can be changed to be a different default.
Considerations
User access to VAT Rates must be set to View to be able to view the Default VAT Codes screen, and to Edit to be able to make changes, and
A VAT Code must be specified for each Type and Status combination.
Information Shown
The screen is laid out in a grid. There is a lookup button for each Type/Status cell. The grid shows the following information:
Type - a row is displayed for each type:
Credit VAT Journal
Debit VAT Journal
Sales Analysis
Purchase Analysis
Status - a column is displayed for each Status:
Home - defaults toVAT Code 1
EU - defaults toVAT Code G where Type is Credit VAT Journal or Sales Analysis, defaults to VAT Code A where Type is Debit VAT Journal or Purchase Analysis
Non-EU - defaults to VAT Code 0