VAT to 20%

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VAT to 20%

Postby gavincrayston » Tue Nov 23, 2010 11:23 am

When our VAT rate changes to 20% next year is it sufficient, apart from individual price changes, to go into the tax file and change the rate for the existing code?

I know you advised to create a new code when we knew the rate was going to switch back but this is a permanent change.
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Re: VAT to 20%

Postby graham » Thu Dec 16, 2010 12:04 am

Hi,

It is best to define all prices excluding VAT (sales tax), then get Retail-Man to add the VAT at the time of purchase. This minimises the amount of work when the rate of VAT changes.

When the rate of VAT changes, we suggest that you post transactions at the original tax rate and check them before changing the VAT from 17.5% to 20%. You will then be able to charge all further purchases at the new tax rate with the minimum of effort.

There may still be some transactions that still need to be charged at the old tax rate after new tax rate commences. If you are invoicing for services that relate to the period before the tax rate change, then these may have to be charged at the original tax rate! In these exceptions, you should change the tax rate back to the original rate, create the invoice, then change the tax rate back to the new rate.


Graham Morris

Ezi Solution
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