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VAT Settings

Sohini Chakraborty
  • Updated

The VAT settings govern how VAT is applied within each clients’ dataset. To view the steps to set up VAT, click on the links below.

VAT Basis

  1. To set the VAT basis, complete the following steps.
  2. Log in to BrightAccountsProduction. The Client and Accounts page appears. Browse to the relevant client and access the dataset.
  3. The Trial Balance page appears. On the Customers page, from the left panel, click Settings.
  4. On the Settings page, under the VAT heading, click VAT Basis.
  5. On the VAT Basis window, enter the required details and click [Save].

VAT Rates

For RCT businesses, system-enabled VAT Codes would not be enabled for deletion.

To configure VAT rates, complete the following steps.

  1. On the Settings page, under the VAT heading, click VAT Rates.
  2. To create VAT rates, click Add on the VAT Rates window.
  3. Enter Code, Rate and Description. Choose whether the VAT code is applicable for Goods or Services. Select Save. The VAT code is now available for use.
  4. To Edit a VAT code highlight the VAT code and select Edit from the screen. Only user created VAT codes can be edited, if the VAT code is a default system code you will not be able to edit it.
  5. VAT codes which are not in use can be deleted, if the VAT code has been used you will not be able to delete it. To delete a VAT code, click on the code and select Delete.

VAT Codes

This section allows you to set the default VAT Codes for the client.

  1. On the Settings page, under the VAT heading, click VAT Codes. The VAT Setup page appears.
  2. On the VAT Setup, page select the appropriate default VAT rate for different cases and select Save.

Change VAT Basis

This new feature will allow you to change the VAT basis, from Cash to Invoice or vice-verse, where VAT Returns have already been made to Revenue/HMRC under a previous Basis

  1. On the Settings page, under the VAT heading, click Change VAT Basis.
  2. You can change the Sales VAT Basis and/or the Purchase VAT Basis from Cash to Invoice or vice-verse. Select the relevant change and click Save.
  3. A confirmation message is displayed that states the changes being made.
  4. Click Yes to proceed with the change.

Validation

Invoice Basis to Cash Basis

You will see a validation message, where there are part-allocated receipts or payments to an Invoice already included in VAT returns. The unallocated portion cannot be automatically included in future returns.

To ensure that these transactions are included in future returns you should unallocate them.

A list of these transactions will appear on screen, you can export the list of transactions to be unallocated to excel, by using the Excel button. Until these changes are made you will not be able to change your VAT Basis.

Cash Basis to Invoice Basis

You will see a validation message, where there are part-allocated receipts or payments included in VAT returns, the unallocated portion will not be included in future returns.

You will need to make a manual adjustment in the next return to include these transactions. The list of affected transactions will be displayed, you can export the list of transactions to excel, by using the Excel button.

Click Agree and Proceed to change the VAT basis.

 

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