VAT Control

The VAT Control module is used to manage your Value Added Tax (VAT). The standard Output functionality enables users to customise their VAT Reports using templates.

What you'll find on this page:

• VAT Control

• VAT Percent

• VAT Types

• Capturing Prices that Include or Exclude VAT

• VAT Types on Items and Price Lists

• Copying Transactions

• VAT Enhancements

VAT Control

There are many settings that influence the behaviour of the VAT Control as outlined below:

• Account Categories - A Taxation category is required to which the VAT Control Account can be linked.

• Accounts - Create a VAT Control Account, set the Reporting = VAT Amount and add a filter for the Account Categories which affect VAT. (Sales, Other Income, Cost of Sales, Expenses, etc.)

• VAT Types - The VAT Types can be edited under Setup > Accounting > VAT Types. A Vat Type where the VAT=Price is VAT needs to be added for the VAT payment Transaction Type.

• Transaction Types - A Vat Payment Transaction Type needs to be created under Setup > Transaction Types, the Accounting column must be checked and access must be granted to the user who will record the VAT Payments in the Ledger. In Setup > Accounting > Transaction Types the VAT Payment must be setup as follows:

  • VAT Type = VAT Amount;

  • Dr Category = Taxation;

  • Dr Account = VAT Control;

  • Cr Category = Bank;

  • Cr Account = Bank from which the VAT payments are made.

• Settings & Defaults - Set Default - VAT Type, the VAT % and VAT Control Account.

1. Period - This shows a summary of the Period and the Balance.

2. Data filter - The Data Filter allows you to filter on any Date Period and view all the Transaction that influence VAT.

3. Entity - This allows you to select which Entity's VAT Control you wish to view.

4. Detailed Ledger - If selected, this allows you to see a more detailed Ledger view in the Data grid.

5. VAT Report - If selected, this will display the data as a VAT Report. The VAT Report differs from the standard Detailed Ledger view as follows: (The data pipeline is VAT_Report.)

   • It does not have an Opening Balance or Balance column.

   • It sorts on the VAT Type (Output/Input) and then on Transaction Date, Transaction ID and Item.No.

   • It does not list VAT Payments and only displays transactions where VAT amount is not equal to 0.

   • The Balance field displays the difference between the Output and Input VAT

6. VAT Type - This VAT Type filter has been added to the VAT Control module and allows you to select the VAT Type you wish to filter the data by. This filter can only be used with the VAT Report.

7. Balance - This shows the Balance of the VAT Statement which is the total VAT to be paid.

8. Data Grid - This shows the Transaction, Date, Description, Debit Number and Account, Credit Number and Account, Tax Type, Debit Input and Credit Output, and the Balance. The Grid View in which the Transactions are displayed can be grouped and filtered to the Transaction Type or the VAT Type.

9. Summary - This shows the Totals of the Debit Input and Credit Output columns.

VAT Percent

The default VAT percent is set under General Settings > Accounting > VAT %. this setting is only used as a default to populate the VAT % when new VAT Types are created.

VAT Types

The VAT Types are created and maintained under Main Menu > Setup > Setup Accounting > VAT Types.

VAT Types have two fields, a Description and a %.

The percentage must be set to 100% if the VAT Type is used for 100% VAT Transactions. eg. Used in VAT Payment transactions.

Typical VAT Types would include:

1. Standard - 14%

2. Exempt - 0%

3. Zero-rated - 0%

4. VAT Only - 100%

The overall default VAT Types for Standard as well as Forex/ Exempt are set in General Settings > Accounting.

The overall default VAT Types for Standard as well as Forex / Exempt can also be set for each Transaction Type. These settings are populated from the overall default when a new Transaction Type is created. See Main Menu > Setup > Transaction Types > Items and Inventory.

If the Transaction Type > VAT Type (Standard) setting is blank, it is assumed the Transaction Type does not use VAT at all in which case all the VAT related fields are hidden.

The Transaction Type > VAT Type Filter setting enables users to restrict which VAT Types may be used in a Transaction. This is done by adding a VAT Type ID filter into the field provided. eg. To restrict a Transaction Type to Standard and Exempt only (using the VAT Types example above), the filter would be in (1,2).

Capturing Prices that Include or Exclude VAT

If your company trades with other VAT registered entities, you would likely want to work in prices that exclude VAT. If, however, your company generally sells to retail clients who are not VAT registered, you would likely want to round your prices to a VAT inclusive amount.

QuickEasy enables users to enter VAT Inc or Exc prices by toggling the VAT setting in Transaction Items. The default VAT setting for a Transaction Type can be set in Transaction Types > Items & Inventory > VAT which in turn cascades from the overall Setting in General Settings > Accounting > Default - Prices (Exc. VAT/Inc. VAT) setting.

If the VAT Type is blank or the VAT % = 0% or 100%, this setting is cleared.

VAT Types on Items and Price Lists

VAT Types as well as the setting to capture prices Inc / Exc VAT are set at an Item and a Price List level. When an Item is added to a Transaction, the Item's VAT settings will override the Transaction Type's default settings, but only if the VAT Type on the Item falls within the VAT Type filter on the Transaction Type.

Copying Transactions

When a Transaction is copied, the VAT settings on the Transaction will be copied but only if the VAT Type on the Item falls within the VAT Type filter on the Transaction Type. If a Transaction that uses Standard VAT is copied to a Transaction that does not use VAT, the following will happen:

• if the Item Type on the new Transaction is Default Item , the VAT inclusive amount is copied.

• if the Item Type on the new Transaction is Items, the VAT exclusive amount is copied.

VAT Enhancements

• The VATITEMS.TYPEID field has been added to Transaction Items grid, hidden by default. This can be used as an indicator of which Est Type was used in the Item.