How to Easify VAT
Easify accommodates for both VAT registered or non VAT registered companies.
Under Tools, VAT Settings you can amend your VAT status and VAT rates at any time:
Under the default Easify settings we have entered the main VAT codes, however you
can add and edit them as you need. For instance, if you export a lot of goods within
the EU you will probably need to add an EU VAT code, but your VAT office can provide
advice on this.
Tip: Ticking the ‘My company is VAT registered’ checkbox merely sets Easify
in VAT mode. It does not communicate with the VAT office or submit your VAT application
for you – you will need to speak to the VAT office direct regarding your VAT registration.
Dealing With VAT Changes
Easify will check to see if there have been any changes to your VAT status when
you edit Orders or Quotes. Therefore if you open an order that you raised when you
were not VAT registered (but you have since become VAT registered) Easify will ask
you if you want to update your tax rates:
Unlike a lot of other software programs that have to issue updates to their code
when the VAT rate changes, Easify allows you to change the VAT rates yourself.
If a VAT rate changes – for example the Standard VAT Rate changes from 15% to 17.5%,
Easify will check to see if there have been any changes to your VAT rates when you
edit Orders or Quotes. Therefore if you open an order that you raised when the standard
VAT rate was 15% (but it has since become 17.5%) Easify will ask you if you want
to update your tax rates:
When you change a VAT rate easify will ask you if you want to pass the VAT
change onto your customers, or whether you want to absorb the VAT rate change
into your sell prices.
So to change the standard rate of VAT in 2011 simply go to the
Tools->VAT
Settings menu in Easify, change the standard rate of VAT from 17.5 to 20 and
click
Ok. When prompted choose whether to keep your sell prices the same,
or to pass the VAT rise onto your customers. Easify will take care of the rest.
Default VAT Rate
You can also set the default VAT rate for your company which will be applied to
all your products. However many businesses sell a variety of products at different
VAT rates, therefore you can easily change the VAT rate on a product by product
basis in the Edit Product window:
Tip: Easify works out the VAT on a per product basis. You may find that when
adding multiple products to orders, the VAT calculated at the bottom of the order
does not equal 17.5% of the Sub Total (Net amount). This is because Easify is calculating
the VAT on a per product basis and not per order.
There are many ways of calculating VAT that are acceptable to the VAT office. As
Easify accommodates the selling of products we have selected the recommended VAT
calculation method for products. This ensures that the product price is always consistent.
VAT and Purchases
When raising purchases you can enter VAT as shown on your supplier invoice or receipt.
Easify will automatically calculate the VAT, however if this differs from
the receipt, you can adjust it in the VAT box. If you have adjusted the VAT, it
shows in green, as shown below:
Tip: Easify is not an accounts package and as such it does not allow you
to run VAT Reports and other associated documentation as required by the VAT office.
However through the in-built export facility you can export all your sales and purchases
over a given period of time into a .csv (excel) file from which you, or your accountant,
can obtain the data you need for your VAT return.