VAT mixed rates

[Rainbownation]

Hi, I am new to digital accounting!
I sell items that have mixed VAT rates. Most are Zero rated but some are 20%

I don’t seem to be able to see how I set up to be able to change between the two rates when needed?

Any help would be great please.

[QFBeth]

Hi @Rainbownation,

When you are entering the invoices you should be able to set the VAT rate on a line by line basis.

Or are you looking to change it somewhere else?

[Rainbownation]

I was looking at the invoice but the drop down box is giving 20% 5% and no vat.
I was also looking at the entries for cash register sales as that didn’t look like it had any options.

[QFBeth]

Hi @Rainbownation,

The no VAT option is equivalent to 0% so you can pick this one. The Cash register works slightly different you can just enter the value of the VAT rather than a percentage.

Hope this helps

[Lurch]

Is this any help for the no VAT/zero VAT clarification?

New "Out of Scope" and "VAT Exempt" Filters

This week we have release a few updates to more efficiently handle Out of Scope and VAT Exempt sales and purchases. Rather than zero-rate your invoice and manually adjust the return (as was previously suggested), you can now flag the whole invoice as either “Out of Scope” or “VAT Exempt”, both these flags will fully exclude the invoice from the VAT Return calculations. If you want to understand a bit more about all the wonderful VAT rates and exemptions, take a look at our new guide here. You…

[Rainbownation]

thank you for your help

[Rainbownation]

Sorry to be sounding thick haha, Ive been doing manual accounting for the life of the business.

So if I was recording shop sales, which have mixed VAT rates would I split this into two cash register entries? with zero rate items, and 20% items?

[QFMathew]

Hi @Rainbownation

The important thing is the VAT amount.

With the cash register tool, you just enter the amount of cash taken, the amount taken by card, and the VAT amount from your till report. No need to enter any rates here as the invoice is created with the exact amount of VAT you enter.

This guide may also help: Cash Register Tool

[Rainbownation]

Ah, now I feel really stupid.
As the VAT box was completing automatically for 20% of the gross amount, I wasn’t aware that I could manually change this figure!

I am now sorted. You see sometimes even the simplest things confuse when you are doing something new.

[QFMathew]

With the invoices themselves, it’s a bit trickier. But the cash register tool is designed to hopefully speed these things up and keep them simple.

Glad to hear you got there though. Any problems, please let us know

[ian_roberts]

Glad you’ve got it sorted, though note that

@Rainbownation

the VAT box was completing automatically for 20% of the gross amount

is not quite right - the VAT will default to 20% of the net, so one-sixth of the gross.

[Rainbownation]

sorry, i meant 20% vat rate of the amount