UK. VAT return

[David Goodenough]

On Saturday 20 June 2009, Rüdiger Wolf wrote:
> >>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.
I am aware of that, my point is that having two standards leads to errors.
> See
> http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/D
>G_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.
Agreed, but setting dates also leaves an audit trail, and means that the
new rates can be setup when they are announced and then automatically
applied when they are due.

David
>
> 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
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