View - Settings - Accounting
- Accounting Settings - Maintenance of VAT rates
Editing VAT codes is limited to editing existing codes. The VAT Code Register can be opened via its own button in the Company Settings tab in the Company Settings window or via the Maintenance of VAT rates button of the Accounting Settings tab in the Accounting Settings window.
You can edit the VAT codes directly from Journal
Entry by using the VAT Code Settings
button on the toolbar.
Main window
VAT Code: Denominates the VAT type's place in the list. By changing the code you can adjust the order in the list for selections in other modules. This makes it easier to access the VAT codes you use most often.
Description: Can be changed if you want to indicate more clearly what the individual code will be used for.
Show in Journal Entry: Whether the code will display as an option in Journal Entry.
Show in Product: Whether the code will be linked to a sales product.
Show in Sales and Invoicing: Whether the code will be used in the Sales/Invoicing module.
Show in Purchasing: Whether the code will be used in the Purchase module.
The VAT tab
The top three fields (None), VAT and Export indicate whether the code is a VAT code or not. (Export does not have a VAT code, only because it is Export)
Per cent: Indicates the per cent rate used for calculating VAT. In UK this is 0.5 or 17.5%.
Function: Can be Input or Output. Sales are 'Output VAT' and Purchases are 'Input VAT'.
Default Sales N/C: This account will always be credited when invoicing products with this VAT code. The exception is if a different Sales N/C has been specified particularly for this product.
Default Purchase N/C: This account is always debited on entering purchases with this VAT code. If your program version contains Logistics functionality the account can be changed when posting a purchase. There are also individual settings at product level that will override the default cost account.
VAT Account: This is the account into which the VAT amount is entered in the balance sheet.
VAT Proportion Numbers: Are used by companies with operations that are partially VAT exempt and partially VAT liable. For joint purchases, a percentage distribution is used, indicating how much of the price of a product is to be included in the VAT calculation.
Show on Turnover statement: This applies to program versions not including Accounting, where you can extract a turnover statement. Here you choose whether the code is to be included on the statement.
The Foreign service tab
Foreign service: If this setting is selected, services purchased from abroad will be tax-processed.
Deductible/Non-deductible: Determines whether taxes paid on services purchased abroad are to be deducted.
N/C for estimated VAT: This is the N/C under which the tax is entered on the balance sheet.
Basis N/C 1: This is the N/C against which the VAT base for the calculation is entered.
Basis N/C 2: This is the N/C against which the VAT base is balanced (to make the journals balance).
Tip! Amounts
entered into an account with a VAT code set as a Foreign
service are always entered as net, even if the option Enter
amount without VAT (net) has been activated in the user settings
for journal entry.
Read more about: