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This screen is used to enter the Partial Exempt VAT (PEV) rate that relates to expenditure against this particular GL management code. As well as being available for on-line maintenance, there is also a mass update process available since the rate of partial recovery may change as agreed with HMRC.
An extract from HMRC explains the concept of Partially Exempt VAT as follows:
Some goods and services are exempt from VAT, such as insurance and finance, education and training, and charitable fund-raising events. If all of the goods and services you sell are exempt, your business is exempt and you won't be able to register for VAT. This means you won't be able to reclaim any VAT on your business purchases.
If you are VAT-registered and incur any input tax that will be used to make exempt supplies, you are classed as partly exempt.
Assume GL Account Key as follows (figure in brackets is the maximum size of the field):
A = Cost Centre (5)
B = Nominal (4)
C = Location (4)
D = Product (5)
Assume GL Company Controls has PEV on CODE ID D (Product)
The following GL Account segments exist:
Cost Centre
Nominal
Location
Product
The following exempt VAT rates are set against Product Code BUILD:
Effective Date Rate
01-Jan-2011 20.00%
There are 6 handling codes:
IR - Inclusive Recoverable
IN - Inclusive Non Recoverable
IP - Inclusive Partly Recoverable
ER - Exclusive Recoverable
EN - Exclusive Non Recoverable
EP - Exclusive Partly Recoverable
The following Tax Codes/ Rates and Effective Dates exist:
Code |
Rate |
Effective Date |
STD |
20% |
4th January 2011 |
NIL |
0% |
1st January 2010 |
RED |
5% |
1st January 2010 |
If one line Invoices are created on 30th January 2011 with details as follows:
TranRef |
Quantity |
Price |
Tax Code |
Handling |
GL Account |
BRICK1 |
100.0000 |
1.00000 |
STD |
IN |
DEVEL 1000 NEWC BUILD |
BRICK2 |
100.0000 |
1.00000 |
STD |
EN |
DEVEL 1000 NEWC BUILD |
BRICK3 |
100.0000 |
1.00000 |
STD |
ER |
DEVEL 1000 NEWC BUILD |
BRICK4 |
100.0000 |
1.00000 |
STD |
IR |
DEVEL 1000 NEWC BUILD |
BRICK5 |
100.0000 |
1.00000 |
STD |
IP |
DEVEL 1000 NEWC BUILD |
BRICK6 |
100.0000 |
1.00000 |
STD |
EP |
DEVEL 1000 NEWC BUILD |
WIRE1 |
100.0000 |
1.00000 |
STD |
IN |
DEVEL 1000 NEWC MAINT |
WIRE2 |
100.0000 |
1.00000 |
STD |
EN |
DEVEL 1000 NEWC MAINT |
WIRE3 |
100.0000 |
1.00000 |
STD |
ER |
DEVEL 1000 NEWC MAINT |
WIRE4 |
100.0000 |
1.00000 |
STD |
IR |
DEVEL 1000 NEWC MAINT |
WIRE5 |
100.0000 |
1.00000 |
STD |
IP |
DEVEL 1000 NEWC MAINT |
WIRE6 |
100.0000 |
1.00000 |
STD |
EP |
DEVEL 1000 NEWC MAINT |
Then the tax details for each of the lines would be as follows:
TranRef |
Nett Value (A) |
Tax Value (B) |
Gross Value (C) |
Non Rec Value (D) |
Receivable Value(E) |
BRICK1 |
83.33 |
16.67 |
100.00 |
16.67 |
0 |
BRICK2 |
100.00 |
20.00 |
120.00 |
20.00 |
0 |
BRICK3 |
100.00 |
20.00 |
120.00 |
0 |
20.00 |
BRICK4 |
83.33 |
16.67 |
100.00 |
0 |
16.67 |
BRICK5 |
83.33 |
16.67 |
100.00 |
13.3 |
3.34 |
BRICK6 |
100.00 |
20.00 |
120.00 |
16.00 |
4.00 |
WIRE1 |
83.33 |
16.67 |
100.00 |
16.67 |
0 |
WIRE2 |
100.00 |
20.00 |
120.00 |
20.00 |
0 |
WIRE3 |
100.00 |
20.00 |
120.00 |
0 |
20.00 |
WIRE4 |
83.33 |
16.67 |
100.00 |
0 |
16.67 |
WIRE5 |
83.33 |
16.67 |
100.00 |
16.67 |
0 |
WIRE6 |
100.00 |
20.00 |
120.00 |
20.00 |
0 |
For the Invoices with WIRE5 and WIRE6 as the items, then even though the Tax Handling Code is defined as Partially Recoverable, because there are no recoverable rates defined for MAINT, they will act as fully non recoverable lines.
The postings generated for the Full Recoverable and Non Recoverable lines will be as per the standard base functionality.
The postings for the Partially Recoverable Invoices will be as follows (Existing in black, new in blue):
For BRICK5
Account |
Value |
Debit / Credit |
Creditors Control |
100.00 |
Credit |
DEVEL 1000 NEWC BUILD - Expense Account |
96.67 (83.33 + 13.33) |
Debit |
VAT |
16.67 |
Debit |
VAT – Partial |
13.33 |
Credit |
For BRICK6
Account |
Value |
Debit / Credit |
Creditors Control |
120.00 |
Credit |
DEVEL 1000 NEWC BUILD - Expense Account |
116.00 (100.00 + 16.00) |
Debit |
VAT |
20.00 |
Debit |
VAT – Partial |
16.00 |
Credit |
If not described elsewhere in this topic, click in the field and press F1 to view a description. See Common Fields for more information.
Fast prompt allows you to quickly view a list of options for certain fields.
See Using the Command Line on opening the screen without going through the menu.
See also
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© Advanced, Jan 2021 |
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