New Compliance Tool – VAT Rate Calculator

[Darren Whelan]

You asked, we listened, we built it. An additional Compli-Tool has been added to our legal compliance tools and calculators.

A compliance tool to assist in identifying the VAT Rate for goods and services.

Legal Compliance Tools and Calculators

Have you ever struggled with working out if an expense is standard rated, reduced rated, zero rated, exempt or outside the scope of VAT? Does it matter what VAT rate you select when posting income or expenditure to your accounting system if there is no VAT? What about if a supplier isn’t registered for VAT – what rate do we select?

Think before you post.

On computerised accounting systems, the VAT rate selected determines whether the transaction (income and expenditure) is included in the VAT Return and if included, where in the VAT Return it is declared. It’s imperative that the correct VAT rate is selected when posting transactions. Analysing income and expenditure to a wrong VAT rate can result in a misdeclaration of VAT Return.

Thanks to Libby for suggesting this one. We will be adding constantly to this one. If there are any transactions missing (and there will be) let us know and we’ll add them for you.

Just to remind everyone, if there is something we can build to make your life easier, please let us know. There’s always a better way of doing something.

Darren

[Diane]

Darren, this is just what we needed. The amount of time we’ve wasted on .gov website trying find this information – thank you.

[James Sutlow]

This is great, thanks Darren. I wonder if it would be useful to also apply this the other way round for our purchase ledger, we sometimes find it difficult to ascertain which VAT code we need to enter against services we are paying for if the PL invoice just says 0% (LR office copies and various searches from agencies are the two that spring to mind) but also sometimes trying to work out if we’re not being charged VAT because the service is exempt or because the supplier is not VAT registered.

[Darren Whelan]

Hi James.

Not sure I follow the requirement. Are you saying you receive an invoice from a supplier that states certain items are just 0% i.e. not stating whether it’s Zero Rated, Exempt or Outside the Scope of VAT? So when you’re posting to Partner, you’ve no idea what VAT rate to analyse them against?

Cheers

[James Sutlow]

Yes, that’s correct, we have to pick zero, exempt or out of scope but it isn’t clear from the supplier’s invoice which it should be.

[Author]

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