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Topaz EMS VAT Rate Change
27th November 2008
Topaz Product Bulletin – EMS Expenses- November 2008
VAT Rate Change December 2008
As part of the recent Budget Report the Chancellor announced that VAT will be changing from 17.5% to 15% from 1st December 2008 and will run through to 31st December 2009. This will have an impact for Topaz EMS users who are utilising the Expenses module within the application. Any expenses entered on to the system with an expense date of the 1st December 2008 onwards will need to have VAT calculated at the new rate. The general advice for software users is that a new VAT code is created and used for transactions on or after the 1st December 2008.
Although the existing functionality within EMS allows VAT values to be overridden it does not allow the VAT code to be changed by the user. So in addition to creating a new VAT code all expense types that attract VAT that is subject to the rate change should be duplicated. This will allow the relevant expense type to be selected in accordance with expense date. This in turn will automatically calculate the relevant VAT value. Please refer to the instruction document 'VAT Changes December 2008' for guidance on how to configure you system.
An alternative approach to handling the changes in the VAT Rate is rather than duplicating VAT Codes, Expense Types and Nominal Posting Definitions is to control the entry of expenses and change the VAT rate against the VAT code only. Although this approach requires much less system set up it does require a cut off date to be applied for expense entry. Again please refer to the document 'VAT Changes December 2008' for guidance.
Please copy and paste this link into your web browser to see the guide document.
http://www.topaz.co.uk/uploads/VAT%20Changes%20December%202008.pdf
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