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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / UK VAT Rate Change
Microsoft Dynamics NAV (Archived)

UK VAT Rate Change

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Posted on by Jonathan Wareham 135

Hi,

With the 15% VAT rate change coming into force next Monday, I wondered what the recommended way of handling this is for Navision. The training guides suggest that a new VAT Product Posting Group should be setup (e.g. 'VAT15') and then copy the VAT Posting Setup from the existing code and amend the rate. The downside is then you would need to amend the 'VAT Product Posting Group' on all the Item/Resource/GL accounts.

Is this how most users do it, or do they just amend the rate on the existing VAT Product Posting Group? I'm guessing by setting up a new rate it helps VAT reporting when the rate changes mid VAT period.

Any help appreciated,

Jonathan

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  • Community Member Profile Picture
    Community Member on at

    Hi Jonathan,

    Setting up a new Vat posting group is the way to go. In Ireland we also have a rate change this Monday but adding a half percent :-(

    There are a number of factors why you would do it this way:

    1. VAT Reporting - we're mid VAT period as well.

    2. Historical transactions

    3. Ability to decide which rate is posted during the change over e.g. this week's despatches.

    We are a partner and we have scheduled time with each customer to update their master data and also the sales and purchase order books so I would contact your partner if you need help.

    I  wouldn't just change the rate - tempting as it look as it will cause more headaches in the long run.

    Hope this helps.

     

     

  • Jonathan Wareham Profile Picture
    Jonathan Wareham 135 on at

    Many thanks Dave, all makes very good sense.

    Jonathan

  • Community Member Profile Picture
    Community Member on at

    Gald to Help.

  • Hitesh Varsani Profile Picture
    Hitesh Varsani 65 on at

  • Hitesh Varsani Profile Picture
    Hitesh Varsani 65 on at

    Would it make sense to:

    Duplicate existing tax id's/schedules and appending for example "old" to the ID.

    On 1st December change the existing ones to the new VAT rates.

    Use the newly created ones with the OLD extension to process outstanding transactions. We wont have any sales invoice trx to do, but there will be outstanding purchases and possibly sales credits which will need to be done at the old rate.

     Would doing this cause any problem in reporting or something else I may be missing?I have to change our system to take into account VAT rates for both UK and IE as we invoice in both countries.

    Hitesh

  • Community Member Profile Picture
    Community Member on at

    Hi Hitesh,

    Are you talking about renaming the code or just creating new ones.  Renaming with rename in all file.

    The problem I see here is the VAT reporting as this method half the VAT period is at the old rate and half at the new rate under one identifier. Also the VAT is stamped on the sales line table for example.

    If you are invoicing in the UK for IE then there is no change as it should be 0% or do you have a company in Ireland?

     

  • Hitesh Varsani Profile Picture
    Hitesh Varsani 65 on at

     

    I was hoping to create new codes with the current VAT rates and using these for any outstanding transactions after 1/12/08

    For the exisiting codes, I was hoping to be able to chage the rates to the new ones. If this is possible this should mean a little less work, as all the customers/suppliers carry on using the existing schedules with the new rates.

    Our UK and IE invoicing is two separate local offices, one in each country. Not cross border.

    For reporting, I think the VAT amounts are stored in the tables, so when I pull data for my VAT reports it will add whatever figurews are present to give me the totals.

    It will be interesting to see how the HMRC website in the UK handles this is as they are nice enough to calculate the VAT for you based on your input/output figures

  • Community Member Profile Picture
    Community Member on at

    Hi Hitech,

    I'm afraid it's not that simple for example if you modify the rate then you need to re-validate the VAT product posting group on orders for example otherwise it posts at the original rate.

  • Hitesh Varsani Profile Picture
    Hitesh Varsani 65 on at

    Thanks for Dave. Hadn't thought about that.

    I'll have a play in my demo company to try and see the effects. We don't tend to have too many too many outstanding orders, so it may still be less work to go through the few that are left on the 1st and change them.

     

    Hitesh

  • Community Member Profile Picture
    Community Member on at

    Hi there,

     We are on AX version 3 and under the Tax Code set up we have a from and to date i.e. we can have the 17.5% to finish on 30/11/08 and the 15% start on 01/12/08.  I have tested in our test company and it all seems to be posting by invoice date and not posting date which is what as we would expect. Is there anything else we should be changing?

    Thanks,

     

     

     

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