VAT Breakdown of Takings

This transaction allows the recording of the VAT Breakdown for a VAT registered organisation of any takings. Normally your till summary will provide you with all of the information required for this transaction.

This can include multiple line items each of which can be standard rated, zero rated, reduced rated or exempt.

Either from a till-roll summary or a manually recorded summary, the details of sales values and the relevant VAT (and VAT rates applied) will be available (If you are not sure contact and discuss with your accountant or advisor). Income and VAT analysis are entered in the VAT Breakdown screen. This is accessed via the Income menu.

Income - Cash/Card Takings - Add VAT Breakdown

Transaction and Tax Point Date

The VAT Breakdown date defaults to the current date, it may be overridden as required. If for VAT reporting purposes a different tax point date is necessary it can be added. The VAT return and VAT transaction reports will use the Tax Point date if it exists.

Branch/Fund

If required select an appropriate branch or fund (in the case of a Not for Profit Organisation) to which the transaction is analysed.

Activity

If required select an appropriate activity to which the transaction is analysed.

Reference

Enter any reference to be associated with the transaction.

Branch/Fund

If required select an appropriate branch or fund (in the case of a Not for Profit Organisation) to which the transaction is analysed.

Activity

If required select an appropriate activity to which the transaction is analysed.

Adding the line item details of the VAT Takings Breakdown

The line items that make up the VAT Takings Breakdown now need to be added.

ADD ITEM button accesses the line item input. Select the Item from the drop-down. Default values, if they exist, for VAT Rate are displayed. These defaults may be overridden.

SAVE ITEM button saves that line item in the screen. Clicking ADD ITEM button on each occasion allows user to enter further Line items. UNDO ITEM cancels the current line item data.

Income Account

The sales income account associated with the line item.

Net Amount

The net amount associated with the item.

When recording purchases, if you have a gross amount and want liberty to calculate the net amount and vat amount simply enter the gross amount in this field, select the appropriate VAT code, and type "g" in the VAT amount field.

VAT Rate

The appropriate VAT rate for the account must be selected. Default VAT rates can be associated with an account via the Account Maintenance screen which is available from the chart of accounts view.

If the business is on the HMRC Flat Rate VAT Scheme, as defined on the VAT details tab of the Business Profile, the VAT rate will default to "Out of Scope" for all purchase transactions. This can be changed if necessary. Exceptions may apply for purchases of capital assets of significant value, please consult your professional advisor.

Current VAT Rates

20.0%, 5% & Zero, used for normal UK VAT transactions.

Exempt

Used when a transaction is an exempt supply; such as the purchase of insurance. See the VAT Guide (Notice 700) for more details or visit the Revenue and Customs site at www.hmrc.gov.uk

EU Acquisition

Used when you purchase goods from a VAT registered supplier in an EU member state. Make sure that the VAT code is set to EU Acquisition, and that the VAT amount shows the VAT which would have applied if the purchase had taken place in the UK. The correct country must be set on the supplier record to ensure correct reporting of the transaction.

EU VAT

Only used if you have you have incurred VAT in an EU member state, (i.e. local VAT). This CANNOT be recovered as input tax for UK VAT. You may make a claim for refund from the member state. A scheme exists to do this known as "Refunds of VAT in the European Community for EC and non-EC businesses" The details are in notice 723, refer to the Revenue and Customs site at www.hmrc.gov.uk Use of this VAT code is described more fully in the "VAT and Liberty Accounts" user guide.

Out of Scope

Used when a transaction is not in the VAT system at all. For example payments into a money purchase pension scheme are out of scope because they are equivalent to savings. Recording a payment of VAT to HMRC is a common example where Out of Scope should be used, as are salary payments and repayments of director loans. Using this code will result in no VAT reporting impact.

None

This code is used where there is no VAT on a purchase transaction, typically from a supplier who is not vat registered. This is not the same as zero rated, exempt or out of scope. The impact is that the value of the purchase is included in box 7 of the VAT 100 return.

Average

This code can be used where there the transaction is recording an aggregation of mixed VAT codes in a single entry with the VAT amount manually set as required.

Special Note - Reverse Charge for Purchases From Non EU Countries

Typically this is required for a purchase from a non-EU country where no VAT has been paid. It simply provides a means of accounting for the VAT that would have been paid if the good or service was purchased in the UK. Applying a reverse charge VAT process will have no impact on your VAT liability.

To use this feature simply set the VAT on the item(s) to the appropriate VAT rate(s) that would apply had the item been purchased in the UK and submit the transaction with the Reverse Charge VAT checkbox ticked (Located in the "Analysis" tab of the voucher in the top half of the screen).

If you subsequently view the item you will notice that the VAT rate has been set by the system to "Out of Scope". This is correct. If you need to make changes to the transaction you must reset the VAT codes to the appropriate code so that the Reverse Charge can be created again using the correct VAT amounts.

VAT Amount

The amount of VAT charged on this item is automatically calculated based on the vat code selected but can be changed.

When recording purchases, if you have a gross amount and want liberty to calculate the net amount and vat amount simply enter the gross amount in the net amount field, select the appropriate VAT code, and type "g" in the VAT amount field.

Click SUBMIT to store the breakdown. The screen re-draws to present the Takings screen

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