Has anyone come up with a solution for administering second hand VAT rules in the UK? No way to use standard so what approach has anyone used to modify system? Basic of rule is: Buy second hand item for £10 (no vat declared) Sell item for £15. The VAT that must be declared is the VAT element of Gross margin. So: Margin = £5 @ 17.5% = VAT of £0.75 Although you would show £15 with no VAT on the invoice - the financial transactions are Net 14.25 VAT 0.75 Total 15.00 There are a few subtle complications but lets keep things easy for now!! Any ideas??? thanks,
Okay here we go!! Assume that the secondhand Items have a different “No.” to the new ones! Create new Item and VAT posting groups so Secondhand Sales and Purchases go to different G/L and VAT Accounts (with VAT and Without) to the new ones. Buy secondhand @ £3.00 Sell @ 6.99 (5.95 VAT = 1.04) at time of Sale Profit 2.99 (2.54 VAT = 0.45) Setup Accounting Schedules to show these accounts, calculated row for your liability and the difference. Secondhand Cost 3.00 Secondhand Sales 6.99 Profit 2.99 VAT Taken 1.04 VAT Due 0.45 Reclaim 0.59 Post a correction Journal No posting code unit or modification required! Post the difference via a journal End of week day period whenever. Only problem is Invoices Statistics But … BTW If you are using 3.60 and you know or have applied the line to the item ledgers, so you can get the true cost, then you could write a small function to calculate and apply the VAT values fron the VAT account back to the Items, as Item charge lines Charge type VAT group being “FULL VAT” Only Have Fun Dave
Thanks for the ideas Dave. I’ll put them in the design melting pot with everything else and let you know what we come up with.