Applying VAT percentage to items

So, I was wondering whether it is possible for the estimate/quote procedure to automatically apply a VAT percentage against an item line - essentially adding it to the initial item cost but just displaying one figure…the cost including the VAT percentage.

I’m a sole trader and not VAT registered. However, I get some invoices that list the Gross cost of each material item per line, with a sub total, and then just the VAT figure thereafter as a percentage of the sub total. I then pay the total which is the two figures combined, obviously.

What I am wondering is whether there is something that could be implemented that worked in reverse of the current discount feature. So, if I typed 20 in the percentage box, it would ADD 20% to each ITEM (not the task) on the list…updating the actual cost of the item to reflect the amalgamation of the initial cost plus VAT.

Therefore, no VAT would be separately listed on the estimate/quote (or subsequent invoice), but it would enable VAT to be covered when providing a quote for materials without being out of pocket. Its really no different to a markup that many firms apply when billing clients for sourcing materials.

Would this be possible?
Ta, Chris

No option to do this as far as I can see. But it’s not too difficult to manually add a mark up to your line items.

Your question does confuse me thought maybe make it clearer? If your not vat registered there’s no need to seperate vat from the net. You just add the gross figure.

That is true, but I already posted in a separate thread the usage of the calculator for being unable to apply line discounts on specific items, that I really didn’t want to then do the same when trying to merge the VAT into the initial cost also.

Sorry mate, let me try and be a little clearer: Invoices I get show the item cost. Sometimes I get a discount depending on the item(s) I’ve ordered, which appears as a percentage. Then it lists the price of that line…for example:
Copper Pipe x1M £2.30 QTY 5 40% discount Net £6.90
Then under that I get the VAT sub total
VAT £1.38
And then the actual total
Total £8.28

Imagine if there were multiple item lines in this example. I would need to work out the VAT for each item and manually change the totals in the estimate/quote. Remember that it draws the initial cost pricing from the inventory, which in this instance (or most actually) is having to be updated to show a cost plus VAT figure as one.

As I tried to convey in my original post, a reverse discount feature would do this without the need to work anything out or touch a calculator or fiddle with the inventory costings. Again, the aim is to incorporate the VAT charged by companies that I cannot list on an invoice, but covering my cost of having paid VAT by way of a markup.

I think I understand what you mean.

Are you saying that in order for you to pass on the cost of the supplied materials you want an easy way to incorporate the cost plus vat for each line item and then you can add a mark up when you issue an invoice?

I understand now why you’d want the feature I’m just not sure how much of a demand there would be for it.

But it’s worth a try any way.

I had thought of a hack that may work using the import purchases option for calculating the cost less discount plus vat however I’m not 100% sure that this feature allows manually adding line items for each purchase so it wouldn’t work that way either currently.

Exactly as you understand, but without adding a markup. Simply the cost incl VAT…the VAT element worked out and applied automatically to the cost, showing as one figure per item line.

I like your idea though re the hack…I may have a little tinker and see what I can establish.

Do people really that much detail? In 20 odd years of being a self employed electrician I have once been asked for a breakdown of a quote and a couple of times been asked for a breakdown of an invoice. Do you really need all this line by line nonsense? Just put the price in for the total job, or even just materials/labour. Everything you’re doing sounds like hard work for the sake of it!

As we are not VAT registered this is something that I have occasionally found a minor irritation. It is a bit of a bore if once purchase covers more than one nominal (say some stationary and some IT consumables) but not enough to prompt me to ask for a feature request…

@Lurch I’ve been a self employed plumber for nearly 20 years also, and what I have always done since day 1 is provide clear and transparent quotations/invoices. I have been asked numerous times when people have requested quotes as to whether it will detail the materials and costs, as people do seem to question a round figure without a breakdown. My approach is just one of the reasons why I get so much business - both from new and repeat customers. I’m honest, provide high quality workmanship and completely transparent in my costings. I am not willing to do things any other way. As the saying goes: if it aint broke, don’t fix it.

As a side note: I once had someone come to my house to provide a quote to install a velux roof window for me. They provided the quote that was a round figure of both labour and materials. I then asked for a revised quote, separating and detailing the material specifics. I found out that the exact same window that was being provided was nearly £80 more expensive than what was sold at Wickes!

I don’t charge markups on materials as people are paying for my time as a master craftsman. I’m not making money on materials that they could buy cheaper themselves.

@FolkLondon A minor irritation is probably a good way of describing things, although when it occurs it appears to be a lot more of a minor irritation as it invariably involves lots of changes. But, we all have different needs and I appreciate your point of view :+1:

I wasn’t meaning to imply you weren’t a professional tradesman, unlike the way you seem to think I am not because I don’t do things your way. I simply meant I see a lot of people doing things the hard way without a thought as to why.

@Lurch It’s all cool…I didn’t take what you said to mean that and I certainly didn’t think that of you either. I think we’re getting lost in translation here!

I was simply trying to convey that it is because I provide such a detailed breakdown that people trust me and that relates to my image as an honest individual. I wouldn’t want to start back-tracking or changing the way I do things, just to make them simpler, as such.

This all stems from the fact that all my quotes and invoices are printed onto pro-forma style template letters that I have made from the printers and shipped a couple of boxes at a time - I always have done! ha! So reliable and they look excellent and I simply use my ancient Windows 95 PC to boot up my software and it prints perfectly every time. Used solely for my work, it is a bit ancient. Which is where QuickFile comes in…emailing quotes, invoices, purchase orders, bank feeds…I like it. Trying to get out of the habit of using a calculator though, hence this feature thread :+1:

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