Non-VAT to VAT registered

Change from a non-VAT system to a VAT System.

Step 1.

Set the Supplier as registered for VAT

Go to Supplier > Lookup, open the Supplier Main Form. On the General Tab, Select the VAT Registered checkbox

Step 2.

1. Go to Stock > Extended Stock Lookup.

2. On the Stock Extended Lookup Tab, click the Select All Visible button (or select the items you want to change).

3. On the Bulk Change Selected tab:

•  For VAT on Purchases, select Input Tax

•  For VAT on Sales, select Output Tax Standard Rate

• Fixed Price Preserve Incl./Excl.: Choose which price you want to keep.

         For example, In the current system, your exclusive and inclusive price, say R90, are the same. If you choose inclusive, the exclusive price will be reduced to R78.94..

•Click on the Change Selected button to process the data.

Step 3.

Click the Convert Stock to VAT button under Company > Data Health and Maintenance, as well as the Convert Sales Orders, Quotes, Job cards, Recurring Invoices to VAT button.

Conversions:

•Convert Stock to Vat: Your average cost and supplier list price will now be changed to Value / 1.15.

•Convert Sales Orders & Quotes to VAT: All previous quotes/sales orders will now include VAT.

You must consult your accountant or tax practitioner for accounting advice.

a) You must submit a VAT claim for your on-hand stock. Please keep your registration date in mind. Otherwise, you will forfeit the 15% VAT.

b) You must claim VAT on capital goods such as equipment, delivery vehicles, and so on; again, please consult your accountant.

See also the VAT (Tax) Setup chapter if you want to change the VAT %