Percentage of non vatable sales
lizzy
Registered Posts: 36 Regular contributor ⭐
If there is a sale for eg £145 & the ratio for the vatable/exempt amount is 65:35, then surley you take 65% of £145, eg 145/100 x 65 and VAT would be 17.5% of that?
I have asked the installers of my software to set it up 65:35 but the vatable amount of £145 is £80.21 and non vatable £50.75?
Do you know how they have got to this figure - sorry think I must be having a stupid moment!
I have asked the installers of my software to set it up 65:35 but the vatable amount of £145 is £80.21 and non vatable £50.75?
Do you know how they have got to this figure - sorry think I must be having a stupid moment!
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Comments
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Hi
£50.75 is certainly 35% of £145 but £80.21 is 55.317% so it looks like it's been set up wrong.
However, I do not have any experience with these types of transactions so hopefully someone more experience and knowledgeable will post after me.0 -
Hi,
Are you aware that in this case, the entity will be subject to partial exemption rules for the recovery of input vat, and so a partial exemption calculation will be required for each vat return to determine how much input vat can be recovered?
I know that doesn't answer your question, just checking you are aware of the vat rules for partial exemption.0 -
Hi, thank you for your answers - yes am aware of all the fun partial exemptions calcs. I am doing the bookeeping & the accountant advised using the ratio 65:35 until the company has been trading for a while to establish the correct figures. So this is what I told the installer of the software
I collected the first 2 weeks reports and the figures are as I mentioned which can't be right - does anyone else have any suggestions or experience of Optix software?0 -
It seems that it calculated the 145 to be including the VAT on the 65%:If there is a sale for eg £145 & the ratio for the vatable/exempt amount is 65:35, then surley you take 65% of £145, eg 145/100 x 65 and VAT would be 17.5% of that?
I have asked the installers of my software to set it up 65:35 but the vatable amount of £145 is £80.21 and non vatable £50.75?
Do you know how they have got to this figure - sorry think I must be having a stupid moment!
145/100 * 35 = 50.75
145/100 * 65 = 94.25
94.25 / 1.175 = 80.21
80.21 * 0.175 = 14.04
You probably worked that out by now. But if not then hope this helps!0 -
Yes I had got to that too.... it took a while ... - Many Thanks Rinske I worked it round to that too0
