SQL Ledger VAT Rate Change


This document describes how to administer VAT rate changes

Adding a new VAT rate

There are three VAT rates in the United Kingdom:

  • Standard Rate
  • Reduced Rate
  • Zero Rate

You may find that your chart of accounts lists them with the percentage in the description. To reduce confusion, it is best to change these descriptions to perhaps:

  • VAT (Standard Rate)
  • VAT (Reduced Rate)
  • VAT (Zero Rate)

Use System->Chart of Accounts->List Accounts to change chart of account entries.

This change may affect reports that use the actual account description fields, rather than the VAT rate value. The default report formats should be unaffected.

To implement a change of VAT rate;

  1. Select System->Taxes
  2. Enter the 'Valid To' date against the appropriate rate, e.g. 'VAT (Standard Rate) 30/11/2008'
  3. Select 'Update'. A new blank line opens beneath any lines with a 'Valid To' date.
  4. Enter the new percentage value in the 'Rate (%)' column of the new blank line. That rate will be applied for all transactions beyond the previous line's 'Valid To' date.
  5. Click save

Depending on the date of invoices and transactions created for 'Accounts Receivable', the most appropriate percentage rate will be applied.

-- Frank Dean - 30 Nov 2008