TAS software - Making business easy

changes to vat rates from 1 january 2010

The standard rate of VAT is scheduled to change back from 21.5% to 21% on 1 January 2010. This change will apply to all goods and services which are currently subject to VAT at 21.5%. All other VAT rates remain unchanged.
How to make the changes in your TAS program
Rather than changing your existing standard VAT rates to 21%, we recommend using different VAT rates. This is the best option, as it’s 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 using a different rates is that if you do have to put through late entries, or edit old transactions, the existing 21.5% rates will still be available. You can simply use the 21% rates for all items with a 'tax point' of 1 January 2010 or later, and the 21.5% rates 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 31 December 2009 and before done prior to the change.
• Take a backup - We always recommend taking a backup before making any changes that affect your data.
• Check your existing VAT rates - You may already have 21% VAT rates set up. If you don't have 21% VAT rates, you'll need to create a new ones.
• Set your 21% VAT resale rate as the default rate - By creating a new standard resale VAT rate, 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 product records - If you have product records and prices in your TAS data, you'll need to change the VAT rate so that the 21% rate is used. You'll also need to check your prices, especially if you use Retail VAT-inclusive pricing.
• If you have any queries about how the new VAT rate applies to your transactions, we've posted answers to some common questions.
• Consider open Sales Orders - This process won't alter the VAT on any open Sales Orders. You'll need to consider whether these should remain at 21.5% or whether the 21% rate applies.
• Check recurring entries - If you have recurring entries such as recurring payments, invoices or journals, you'll need to check the correct VAT rate is applied to these entries.

Select your TAS program from the list below, for step-by-step instructions on making the change

• TASBooks (and TAS BOOKS 2 & TAS BOOKS 3)
• FirstBooks (and TAS BOOKS 1)

TASBooks (and TAS BOOKS 2 & TAS BOOKS 3)
Get as up-to-date as you can
Process and post any outstanding invoices, speak to your suppliers and get their invoices before 31 December 2009 and allocate any cash on account. This will make the whole changeover 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 take a backup.  If you're not sure how to take a backup, full details are in your program helpfile and user guide.
Check your existing VAT rates
You may already have 21% VAT rates set up. If you don't have 21% VAT rates, you'll need to create them.

• From the TASBooks menu bar, select Central > VAT Rates and Reporting > Maintain VAT Rates (option 031).
• Check to see if you already have 21% Rates, for example rate 1 and rate 5.
• If you do have 21% VAT rates:

• In the VAT Calculation Defaults section, select the Default Standard Rate as your 21% Resale Standard rate; for example, rate 1.
• To accept the new rate, click Save.

• If you don't have 21% VAT rates, you'll need to create them:

• In the VAT Rates list, scroll down to the next available rates, for example, rate 11 and rate 12. Complete the rates as follows:

• In the VAT Calculation Defaults section, select the Default Standard Rate as your 21% Resale rate; for example, rate 11.
• To accept the new rate, click Save.

Set your 21% Resale VAT rate as the default rate

• To ensure the new VAT rate is used by default when you create new products, from the menu bar select Central > General Company Information > TASBooks Configuration (option 012, or option 011 in some older programs).
• In the left-hand pane select Default Settings and in the right-hand pane scroll down to the Product section.
• Under the Product section select VAT rate, and from the drop-down list, select the 21% Resale VAT rate.
• Click OK then click Yes to save the entry.

Update your product records
You'll need to update your product records so that they use the 21% 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 TASBooks 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 TASBooks v1 (or TAS BOOKS v8.04) you can 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.

Note: To run this option, login to TASBooks as Supervisor (SPV).

• Select Products > Utilities > Change Product VAT Rate (option 584).
• Ensure the 21.5% VAT Standard Rate appears in the Current VAT Rate box, and the 21% Resale Standard Rate appears in the New VAT Rate box.
• If you use Retail VAT-inclusive pricing, select the Recalculate Selling Prices check box, then choose from the following options.
• If you don't currently use Retail VAT-inclusive pricing, we recommend you select Recalculate Selling prices and choose the first option below. This ensures that if you do decide to use Retail VAT-inclusive pricing in the future, your selling prices will all be correct.
  
  Note: The option names are taken from the first price of the Standard pricing section of the product record, this is normally your Retail (Ex VAT) price, but the name may be different on your system.

Note: All changes to VAT rates and selling prices will be shown on your System Audit log.

• To change the VAT rate and selling prices on products, click Change Rate.
• To confirm the change, click Yes and then click OK.
• 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 21% Resale VAT rate.
  
  Note: You'll need to consider how you want to deal with any changes to product pricing, particularly if you use Retail VAT-inclusive 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 changed the VAT rate on your standard-rated products. You should now print a price list by selecting Products > Products / Services Reporting > Print Price List (option 532).
Consider open Sales Orders
The above process won't alter the VAT on any open Sales Orders. You'll need to consider whether these should remain at 21% or whether the 21% rate applies. If you are unsure which rate applies to your Sales Orders, visit the HMRC website.
If you need to amend the VAT rate on unposted Sales Orders, from the menu bar select Sales Orders > Sales Orders > Enter / Change Sales Orders / Credit Notes (option 611). Select the relevant Sales Order, and enter the correct VAT rate, for example, rate 1 and re-save the Sales Order.
Check recurring entries
If you have recurring entries, such as invoices or journals, you'll need to ensure the correct VAT rate is applied to these entries.

• To check or edit a recurring sales invoice, journal or customer receipt, from the menu bar select Sales > Enter / Change Journals > Recurring Sales Invoices / Journals / Customer Receipts (option 223).
  
  To check or edit a recurring purchase invoices, journal or supplier payment, from the menu bar select Purchase > Enter / Change Journals > Recurring Purchase Invoice / Journals / Supplier Payments (option 323).
  
  To check or edit recurring sales orders, from the menu bar select Sales Orders > Sales Orders > Recurring Sales Orders (option 614).
• To amend the VAT rate on an entry, select it in the list and click Edit.
• In the VAT Amount box, delete the amount displayed then change the VAT rate to the new rate, for example 1, then press TAB.  The new VAT amount is then calculated. 
  
  Note: The VAT amount won't recalculate unless you delete the VAT amount displayed before you change to the new rate.
• Save the recurring enter and edit any further entries required.

Need more advice?
We've added answers to some of the most common questions about the VAT changes.
If you have a TAS support plan, you can contact our Software Support team on 1890 946 881 if you need any help on making the changes in your TAS program.
If you haven't got a TAS support plan, there's never been a better time to take one out.  Call your TAS Account Manager on 1890 946 881 for full details.

FirstBooks (and TAS BOOKS 1)
Get as up to date as you can
Process and post any outstanding invoices, speak to your suppliers and get their invoices before 31 December and allocate any cash on account. This will make the whole changeover 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 FirstPage, select your company and take a backup (in TAS BOOKS 1, from the program menu bar select File > Backup). If you're not sure how to take a backup, full details are in your program helpfile and user guide.
Check your existing VAT rates
You may already have 21% VAT rates set up. If you don't have 21% VAT rates, you'll need to create them.

• From the program menu bar, select Company > VAT > Setup VAT Rates (in TAS BOOKS 1, select VAT > Setup VAT Rates).
• Check to see if you already have 21% Rates, for example rate 1 and rate 5.
• If you do have 21% VAT rates, you can just click Close.
• If you don't have 21% VAT rates, you'll need to create then:
• In the list of rates, select each of the next available rates, for example, rate 11 and rate 12 then click Edit.
• Complete the rates as follows:

• To accept the new rates, Close.

Set your 21% Resale VAT rate as the default rate

• To set the 21% Resale rate as your default, from the program menu bar select Company > Company Information (in TAS Books 1, select Preferences > Company Information and click the VAT Scheme tab).
• In the left-hand pane select VAT and Scheme Selection (in TAS Books 1, click the VAT Scheme tab).
• In the Default Standard Rate drop-down list, select 21% Resale Rate.
• To accept the new default rate, click OK.

Update your product records
You'll need to update your product records so that they use the new 21% VAT Standard Rate. 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 > Reports > Price List.

• If you have FirstBooks or TAS BOOKS 1 v8.03 you can change the VAT rate in all of your product records in one go. Select File > Utilities > Change Product VAT Rate.
• Ensure 21.5% VAT Standard Rate appears in the Current VAT Rate box, and 21% Resale Standard Rate appears in the New VAT Rate box.
• If you use Retail VAT-inclusive pricing, select the Recalculate Selling Prices check box, then choose from the following options.
• If you don't currently use Retail VAT-inclusive pricing, we recommend you select Recalculate Selling prices and choose the first option below. This ensures that if you do decide to use Retail VAT-inclusive pricing in the future, your selling prices will all be correct.
  

• To change the VAT rate and selling prices on products, click Change Rate.
• To confirm the change, click Yes and then click OK
• To change the VAT rate on products click Change Rate.
• If you only have a few product records, or you are using TAS BOOKS 1 v7 or earlier versions, you can edit each individual product record to amend the VAT Rate.
• From the program menu bar select Products > Enter / Enquire on Products / Services.
• Press F2, and select the product code from the lookup list.
• In the VAT Rate drop-down box, select the 21% Resale VAT rate.
  
  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 changed the VAT rate of your standard rated products.  You should now print a price list by selecting Products > Reports > Price List.
Consider open Sales Orders
The above process won't alter the VAT on any open Sales Orders. You'll need to consider whether these should remain at 21.5% or whether the 21% rate applies. If you are unsure which rate applies to your Sales Orders, visit the HMRC website.
If you need to amend the VAT rate on unposted Sales Orders, from the menu bar select Invoicing > Enter / Enquire on Sales Orders. Select the relevant Sales Order, and enter the correct VAT rate, for example, rate 1 and re-save the Sales Order.
Check repeating transactions
If you have repeating transactions, such as a repeating payment, you'll need to ensure the correct VAT rate is applied to these entries.

• To check or edit a repeating entry, from the menu bar select Bank > Repeating Transactions (in TAS BOOKS 1, select Bank > Recurring Transactions).
• To amend the VAT rate on an entry, select it in the list and click Edit.
• In the VAT Amount box, delete the amount displayed then select the new VAT rate, for example 1, then press TAB.  The new VAT amount is then calculated. 
  
  Note: The VAT amount won't recalculate unless you delete the VAT amount displayed before you change to the new rate.
• Save the repeating enter and edit any further entries required.

Need more advice?
We've added answers to some of the most common questions about the VAT changes.
If you have a TAS support plan, you can contact our Software Support team on 1890 946 881 if you need any help on making the changes in your TAS program.
If you haven't got a TAS support plan, there's never been a better time to take one out.  Call your TAS Account Manager on 1890 946 881 for full details.