On January 4th 2011 UK VAT is due to be increased to 20% (from its current 17.5%). This article summarises the considerations which users of [email protected] and [email protected] will need to take into account in the setup of their systems.
The exact nature of the changes which will need to be made will depend on your System Setup and you may wish to have a [email protected] Consultant carry out these changes.
Additionally the following guidelines will be of general assistance:
Review Where The Vat Rate Is Currently Held
In some instances, the VAT value will be held as a Constant in the Calculations section of the Maintenance Application.
In some instances, the VAT value will be held as a Value Table which is referenced in a Value Hierarchy and a related Calculation.
Ensure you take a backup of the database prior to making any changes. At a minimum we recommend that you take screenshots of the the settings you are about to change prior to carrying them out.
Making The Changes
Before making any changes its prudent to ensure that all pre Jan 1 2011 claims are posted. (If you are using Value Hierarchies then this will not be an issue as VH Tables are date specific).
Where the VAT Rate is held as a constant in one of your calculations then depending on your setup this will either be a value .175 which will need to be changed to .2 or it may be the inverse (so for example 0.851063829787234 needs to become 0.833333333333333 etc).
Where the VAT Rate is held in a Value Table you should create a new one and on the Advanced tab ensure that the From Period is set to the appropriate accounting period from which the new rate will take effect. By doing this, all transactions prior to this set period will calculate with the old VAT Rate and those falling on or after the new period will calculate with the new VAT Rate.
Other Factors To Consider
Review whether any Reports or Invoice Templates have any Text Box’s which specify the VAT Rate.
In some complex implementations the XSL stylesheets which are used to format Exported Data may need to be amended by your consultant.
In some instances an Analysis Value on a Project or Client record is used to hold a VAT Rate.