DRIVE will allow you to record your VAT entries and produce your VAT Return for both Ireland and the UK, including 'Notional VAT Rates'.
Setting Up VAT Rates
Go to Tools > Lookup > VAT Rate.
Click on the hyperlink, all existing VAT Rates will be displayed.
Click Add to create the VAT Rate. You can also Edit and Delete Rates on this screen.
When adding, you will need to enter details in the following fields. Click OK when complete.
|
Heading |
Description |
|
VAT Code |
Enter a VAT code |
|
Description |
Enter the Description for the VAT code |
|
VAT Rate (%) |
Enter the VAT % (For Notional VAT, the VAT Rate percentage must be 0) |
|
Notional VAT |
If the VAT code is for Notional VAT then you will be able to select the VAT rate for the Goods or Services. E.g. for an Irish supplier, the VAT Code can be 23% as Standard. It can be a reduced rate as well. |
Notional VAT
When posting a transaction where notional VAT is applicable, you will use the 0% VAT Code. The transactions will be posted with 0 VAT.
Notional VAT Rates will only affect the VAT Return, not the posting or nominal code balance.
On the generated VAT Return the VAT on the Purchase Invoice will be calculated at the Notional VAT Rate (e.g. 20% and will show in box 2 and 4 in the VAT Summary).
On the printed report you will also see the Notional postings.