Identifying vatable & non vatable sales

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
Having a thick moment :shock:

Are there any rules for working out how much of a clients sales are vatable & non vatable.

The client only keeps records of the total sales, yet sells items which are either zero rated or standard rated.

Michelle

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    You are going to have to pick out the Zero rated ones manually. :(

    Once you have done that calculate ( x ) *47/40 = Net sales box 6 (remembering to also add the zero rated stuff here too).

    then ( x ) *7/47 = output tax box 1 & 3 presumably.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Thanks Dean :D

    That's what I thought I would have to do :cry:

    What a job for a Friday afternoon :(

    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Hi Michelle

    Are you able to pick out the non vatable (are they zero rated or exempt?) items?

    What are the items? I had a similar situation a few years back with a trader who sold kids clothes and just kept till receipts with nothing split up :roll:

    What I had to do was look at the stock purchases and calculate what percentage of those were zero rated and what percentage were standard rated. On that basis, I then worked out the zero and standard rated sales :D It was a 2.5 year VAT return as I had got her to register under the amnesty - some tosser had told her that didnt need to register for VAT until her standard rated supplies went over the threshold :shock: doh!

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Hi Claudia,

    It's another independant newsagents (as if my other one doesn't cause me enough problems) :roll:

    My situation is similar to yours, the till receipts show total sales per day - no splits.

    Zero rated items are newspapers, milk & stamps mainly with the odd bit of zero rated confectionary. The rest is standard rated greetings cards, toys, rest of confectionary, stationary, cigarettes etc.

    I could pick the zero rated items from the invoices and work it from there which roughly gives me 25% of the total sales as zero rated 8)

    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Had he got a programmable till? i.e department settings?

    Would make your life a whole lot easier in the future :D

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Yes I know, it was one of the first things I suggested on seeing the till receipts - anything for an easier life :D

    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    I got my client sorted out with their till sales A and sales B - simple :lol:

    She didnt do it cos she has been told she didnt need to worry about VAT.


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Have a look at the retail schemes.

    There is a retail scheme specifically aimed at Newsagents

    Robin Stride FMAAT (412)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Identifying vatable & non vatable sales

    Hi Robin

    Thanks for that, I have had a look and now got more info from the previous accountant. Working through his figures(which were not forthcoming) it looks like he used direct calculation, so going with that.

    Michelle

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