UK. VAT return

[Rüdiger Wolf]

>>On Friday 19 June 2009, R?diger Wolf wrote:
>> I also need to get my head around how to do United Kingdom VAT accounts.
>>
>> In the UK there are some additional ways to do VAT returns.
>> Flat Rate and/or Cash based.
>>
>> I have started documenting my attempts at this at
>> http://gnucash.wikia.com
>>
>I notice that in your setting up tax tables entry that you suggest having
>two different rates, one at 15% and the other at 17.5%.  This seems to
>show up a limitation in GnuCash.  Most accounting packages seem to 
>have a means to set a rate called STD (standard), and then entries
>which have dates attached to them so that you specify when a new
>rate starts and the system finds the right one.  Otherwise if you have 
>products which you defined as having 15% VAT when the rate changes
>you have to go around changing all of them to 17.5%.
>David

Hi David

I still need to enter a number of test transactions but I am hoping that
I can set up several VAT rates in the tax table and then select the
respective VAT rate at the time of creating bill/invoice. 

Even in the UK there several VAT rates simultaneously. Standard Rate,
Reduced Rate and Zero Rate.
See
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015895

Having multiple VAT rates is quite common. See the different VAT rates
for quite a number of contries.
http://en.wikipedia.org/wiki/Value_added_tax.

After a quick look I think it will be better to create tax table entries
for Standard Rate, Reduced Rate and Zero Rate with different associated
accounts/categories.  When creating in invoice or bill I can pick which
VAT rate to use per line item. I think I can also setup a default VAT
rate per customer/vendor.

As I see the Tax Table functionality in Gnucash at the moment it will
require a change to the % VAT in the tax table on the 1st Jan 2010 in
order to begin using the new rate on that date. I guess one will need to
make sure all bills/invoices are posted correctly in order to make sure
the VAT amounts are correctly calculated and posted before/after the VAT
rate change.

Regards
Rudiger