TAS BOOKS 2 and 3 VAT changes
On 1 December, the standard rate of VAT increases from 21% to 21.5%. This applies to all goods and services which are currently subject to VAT at 21%.
Rather than changing your existing standard VAT rates to 21.5%, we recommend setting up two new VAT rates. This is the best option, as its likely that you will need to make late entries after the new rate is introduced, for example, you can't control late invoices coming in from your suppliers. The advantage of creating the new rates is that if you do have to put through late entries, or edit old transactions, the existing 21% rates will still be available. You can simply use the new rate for all items with a 'tax point' of 1 December or later, and the old rate for items with an earlier date.
We recommend you:
Get as up to date as you can - Although you'll be able to process late entries if you need to, the change over will be even easier if can get as much of your processing for 30 November and before done prior to the change.
Take a backup - We always recommend taking a backup before making any changes that affect your data.
Create two new VAT rates at 21.5% and set as your default rate - By creating two new standard VAT rates, you can choose the rate you apply, based on the date of sale or the date you became liable to issue the invoice.
Update your products - If you have product records and prices in your TAS BOOKS data, you'll need to change the VAT rate so that the new 21.5% rate is used. You'll also need to check your prices, especially if you use Retail VAT-inclusive pricing.
Get as up to date as you can
Process outstanding invoices, speak to supplier and get their invoices before 1 December and allocate cash on account. This will make the whole change over process as easy as possible, and help you clearly see which items relate to the old rate and which to the new.
Take a backup
From the Company Manager window, select your company and click Backup. Click OK, complete the Backup window then click Backup. You are now ready to set up your new VAT rates.
Create two new VAT rates at 21.5% and set as your default rate
- From the TAS BOOKS menu bar, select Central > VAT Rates and Reporting > Maintain VAT Rates (option 031).
- In the VAT Rates list, scroll down to the next available rate, for example, rates 11 and 12. Complete the rates as follows:
||VAT Control A/c
||VAT Control A/c
- In the VAT Calculation Defaults section, select the Default Standard Rate as the new 21.5% Resale rate, for example, rate 11.
- To accept the new rates, click Save.
Update your product records
You'll need to update your product records so that they use the new 15% VAT Standard Rate. You'll also need to consider the effect on your selling prices - particularly if you use Retail VAT-inclusive pricing. The way you do this will depend on how many product records you have and the version of TAS BOOKS that you are using. It's a good idea to print a product price list before you start, you can do this by selecting Products > Products / Services Reporting > Print Price List (option 532).
If you have TAS BOOKS v8 and have a current TASCover subscription, you can download an update to the latest version of TAS BOOKS (v8.03) which includes a new function enabling you to change the VAT rate in all of your product records in one go. You'll also be able to amend your Retail VAT-inclusive pricing. We're working hard on testing this version and we hope to have it available for download by Thursday 27 November. After downloading and installing TAS BOOKS v8.03, you'll be able to use this new option as follows:
- Select Products > Utilities > Change Product VAT Rate (option 584).
- Ensure 21% Resale in the Current VAT Rate box, and 21.5% Resale appears in the New VAT Rate box.
Recalculate Retail from Retail (Ex VAT)
Select this option to recalculate your Retail VAT-inclusive selling price based on the new rate of VAT, using the first price in the Standard Pricing section of the Product record. This is normally your Retail (Ex VAT) price. This means your Retail VAT- inclusive prices will be decreased by the amount of the VAT reduction.
For example, if your Retail VAT-inclusive price is €39.99 and the price excluding VAT is €33.05, after running the utility the Retail VAT-inclusive price will increase to €40.16, with the price excluding VAT staying the same at €33.05.
|Recalculate Retail (Ex VAT) from Retail
Select this option to recalculate the first price of the Standard Pricing section of the Product record, this is normally your Retail (Ex VAT) price, based on your existing Retail VAT-inclusive price. This means that your Retail VAT-inclusive prices will not change.
For example, if your Retail VAT-inclusive price is €33.99 and your price excluding VAT is €33.05, after running the utility the Retail VAT-inclusive price will not change, but your price excluding VAT will decrease to €32.91.
Note: All changes will be shown on your audit trail.
- To change the VAT rate on products click Change Rate.
- To confirm you want to make the change, click Yes, then click OK.
You've now change the VAT rate of your standard rated products. You should now print a price list to check our prices and VAT. To do this, from the menu bar select Products > Product / Services Reporting > Print Price List.
If you only have a few product records, or you are using TAS BOOKS v7 and earlier versions, you can edit each individual product record to amend the VAT Rate:
- From the TAS BOOKS menu bar select Products > Products and Services > Maintain Products and Services (option 511).
- Press F2, and select the product Code from the lookup list.
- In the VAT Rate drop-down box, select the new 21.5% VAT rate which applies.
Note: You'll need to consider how you want to deal with any changes to product pricing, particularly if you use retail pricing. If you want to amend your prices, you can manually amend your product records.
- When you've made all of the changes you need to this record, click Save.
- Repeat this process for each of your products where standard rate VAT applies.
You've now change the VAT rate of your standard rated products and can re-run your Price List to check your prices and VAT.
Please see relevant information