Maintain VAT Rates {FCSC-1}


VAT / GST rate codes and attributes such as rate and taxably supply indicator are defined in this option.

During the processing of financial  transactions / documents which relate to  the making of a taxable supply, the VAT / GST processed is calculated using the rate linked to VAT / GST code entered by the user. For the various financial programs to do this, the user must supply the VAT code. By entering a VAT / GST code the user not only selects a rate to be applied but also classifies the transaction in terms of VAT / GST treatment.


   
Panel Box 1:   Maintain VAT Rates

Field Type
&
Length		 Description
VAT Code A2 Supply a unique code.
Name A40 Supply a suitable description to describe the code.
VAT Rate N5,3 The VAT /GST rate applicable to the code supplied above. The rates specified here must be the rates as supplied by the local tax authority. In the event of the  local tax authority changes rates, it is the user's responsibility to contact Adapt IT ensure that the rates are changed here accordingly.
VAT Apportionment N5.3 Supply the apportionment rate to be applied to the VAT rate.

Normally when a vendor makes a taxable supply the full amount of input VAT may be claimed. However, where goods or services are imported or acquired for mixed purposes (taxable standard rated and exempted) input  may only be claimed to the extent that the institution is making taxable supplies. Where the expense cannot be directly attributed to either taxable or exempt supplies the input tax, which may be claimed, has to be calculated according to the apportionment percentage obtained, using an approved method.
Taxable Supply Indicator A1

Classifies the transaction in terms of VAT / GST treatment.

VAT/ GST is an indirect tax levied on transactions rather than persons.  

  • The tax is levied on the value added to goods and services.
  • The tax is borne by the final domestic consumer.

The concept of supply is integral to the application or VAT / GST and can be broken down into:

  • Taxable Supplies
    • Standard Rated
    • Zero Rated
    • Exempt Supplies
    • Deemed
    • Change in Use
    • Bad Debts
  •  Non-Taxable Supplies
By selecting a VAT rate and taxable supply indicator the user classifies a transaction as to how the transaction is treated for VAT / GST purposes.

The application contains the following business rules:
It does not allow a tax rate equal to zero (0.00) if the supply indicator is not Exempted, Zero rated or Non-Taxable.
The apportionment rate must be greater than zero (0.00) and less or equal to one (1.00) if the supply indicator is not Exempted or Non-Taxable.

Vat Rate Vat Apportionment % Taxable Supply Indicator.
0 (zero) 0 (zero) Exempted Item
0 (zero) >0 Zero Rated Item
>0 =>0 Standard Rated
  0 (zero)              0 (zero)             Non Taxable

Effective Date DD-MON-YYYY The date the rate became effective. The purpose of the effective date is to cater for rate changes should they occur.


Example(s):

fcsc-1b1p1i1

.
.

Processing
Rules		  
  No special processing rules.


See Also:



History Of Changes

Date System Version By Whom Job Description
20-Jul-2006 v01.0.0.0 Elsabe t133454 New manual format.
29-Jan-2009 v01.0.0.1 Ernie van den Berg t155140 Review the button.
14-Jul-2009 v02.0.0.0 Marchand Hildebrand t158613 Add the taxable supply indicator to the VAT rate definition.
09-Nov-2015 v04.0.0.0 Marchand Hildebrand T199722 ADF conversion