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  1. #1
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    Unanswered: A VAT problem....

    Hi,

    My problem:
    Be able to charge two separate VAT rates 0% or 20%.
    At the moment the way VAT is worked out is looking up the records(a query) and then doing a manual calculation to work out the VAT on a report.
    Now I am told some disbursements are exempt from VAT.

    I am wondering how to do this.

    The disbursements are entered into a time sheet(a long with time recording) and then a query looks up the disbursements and calculates VAT at 20%(as mentioned, in a new field).

    How do I charge the right amount of VAT? I am really confused and I cannot think of any possible solutions. Any help will be really appreciated.
    Last edited by rasghar; 12-20-11 at 23:03.

  2. #2
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    you should store a code to the VAT rate on a by product / item basis

    As to how you model that, I guess it depends on what your system is trying to achieve
    if this is a passive report that is not used for fiscal or tax purposes then you could get away with a flag that indicates if VAT is payable. the problem with that approach is that somewhere you have to define what the VAT rate. hard coding it in each and every form is daft and prone to error when VAT changes. haveing a constant defined in a common module makes more sense, but still requires developer intervention when VAT rates change
    having a VAT table with codes makes more sense
    how you implement that is up to you.
    you could use, say an alpha digit (or digits), store a description and value. you could use the value as the code so you would just need the value and description. use the code in the item description, and then pull the VAT rate (value) through using a join between the line item and the vat table

    you need to consider if you reports / forms can span a VAT change. if so then you really really ought to use a vat rates table.

    FWIW
    there are 4 categories of VAT in the UK
    exempt, items excluded from the clutches of VAT
    zero rated, goods inside the scope of VAT but currently not chargable
    fuel rate, around 7..8%
    standard rate, currently 20%
    I'd rather be riding on the Tiger 800 or the Norton

  3. #3
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    Jul 2011
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    Hi healdem,

    you should store a code to the VAT rate on a by product / item basis
    I'm not sure that is a viable/possible solution.

    Let me give you some more detail about this problem.

    Firstly, i've created a time recording system for a solicitors firm.
    The VAT in question is for a field called "Disbursements".
    Disbursements can literally be anything, so I cannot give it a name/value for such. The value is variable. I've uploaded a screen shot in word and given more information.
    I can design another sub-form, just for entering disbursements. Would it be possible to add a button and if the VAT is 0% it'll charge 0% in the report?
    Is that possible?

    If you need any more information or any clarification, please ask.
    Attached Files Attached Files

  4. #4
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    so you have a separate column for disbursements
    when you come to calculate the VAT then exclude disbursements from the ex VAT sub total
    classically for VAT invoicing you have goods and services itemised, the VAT rate applicable then a sub total of goods a sub total of VAT and a grand total including VAT.
    the sub total for goods & services is the sum of ex vat prices, the VAT is the VAT on VATable goods and services

    I don't see the point of adding a button.... as your column for disbursements is just that and VAT dont' apply to that.
    the real issue I guess is how you have designed your underlying tables
    you already have a mix of charging, you have hourly rates and per item disbursements are just a form per item.

    the alternative is that you allow the scumbag, sorry lawyer, to create a separate fee line for non vattable items
    I'd rather be riding on the Tiger 800 or the Norton

  5. #5
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    Quote Originally Posted by healdem View Post
    so you have a separate column for disbursements
    when you come to calculate the VAT then exclude disbursements from the ex VAT sub total
    classically for VAT invoicing you have goods and services itemised, the VAT rate applicable then a sub total of goods a sub total of VAT and a grand total including VAT.
    the sub total for goods & services is the sum of ex vat prices, the VAT is the VAT on VATable goods and services

    I don't see the point of adding a button.... as your column for disbursements is just that and VAT dont' apply to that.
    the real issue I guess is how you have designed your underlying tables
    you already have a mix of charging, you have hourly rates and per item disbursements are just a form per item.

    the alternative is that you allow the scumbag, sorry lawyer, to create a separate fee line for non vattable items

    The problem is that some disbursements are charged with 20% VAT and some are charged with 0% VAT.
    My idea for the use of button, if a disbursement is charged at 0% they could press the button if it is 20% it'll do it automatically? Is that possible?

  6. #6
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    OK so you have to split those items into VATtable and not VATtable items OR get the scumbag, sorry lawyer, to enter the VAT element on disbursements. whether you do that as a modal pop up form I dunno
    I think you are working towards 2 types of sales item
    1 is per hour
    the other is per unit
    classically you would enter these as one row per item and identify if VAT is payable there or not

    I think your existing form is great for review but isn't going to hack it for the details, through either amount of detail per line or complexity.
    I'd rather be riding on the Tiger 800 or the Norton

  7. #7
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    thanks Healdem,

    Your input has been very helpful.

    Quote Originally Posted by healdem View Post
    OK so you have to split those items into VATtable and not VATtable items OR get the scumbag, sorry lawyer, to enter the VAT element on disbursements. whether you do that as a modal pop up form I dunno
    Can you please explain this point a bit more detail? Sorry, but I am getting confused to what to do.

    Thanks

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