To set your system up for Gross VAT / GST, please follow these instructions.
Info: These instructions need to be followed in order from Step 1 to Step 4.
Step 1 - Change the default value of your service items to include VAT / GST
Make sure that the price entered in your default charge is INCLUSIVE of VAT.
Example
- The service shown below has a gross price including VAT of £15.00.
- The current rate of VAT in the UK is 20%.
- The client will be charged £15.00. This figure will show on the invoice.
- The nett value of the service (excluding VAT) is £12.50.
- The VAT element is £2.50.
Gross VAT on Price Rules
Make sure that your price rules are also recalculated to INCLUDE VAT if required.
Gross VAT on the Service Order
The scheduled service has a default charge of £15.00 (inclusive of VAT) which shows on the invoice.
The VAT element of £2.50 is subtracted from the Gross amount leaving a net value of £12.50.
Gross VAT on the Invoice
Example of gross VAT showing on an invoice with the VAT element of £2.50 subtracted from the Gross amount leaving a net value of £12.50.
Step 2 - Check that Staff Pay is being Calculated Correctly
When creating or amending your service items, note that if you decide to pay staff based on a percentage, the system will calculate the percentage owing to a staff member based on the net figure (after VAT / GST has been deducted).
Staff Pay Using a Percentage with Gross VAT
- With Staff Pay set to 50% the staff member is paid £6.25.
- This is 50% of £12.50 – the net figure after VAT is deducted.
- If this was not your intended outcome then you may need to adjust your percentage payment or switch to using a fixed amount of pay.
Step 3 - Setup Your Tax Settings
Navigate to Admin > Settings > Tax Settings
See Set up my Tax Settings and complete the fields as appropriate.
Step 4 - Contact Support
Note: Once steps 1, 2 and 3 above are complete, you should contact support to request your system be changed to "Gross VAT / GST."
There is a "setting" behind the scenes that can only be set by support. Once set, all subsequent invoices generated will show prices "gross" of VAT / GST and VAT / GST will be deducted from the totals for the purpose of calculating VAT / GST outputs (as opposed to being added).
Info: Once you have contacted support, please do not create any more invoices in your system until support has confirmed that your system is now in "Gross VAT" mode.
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