Percentage of non vatable sales

lizzy

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!

Anne Boleyn

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.

Andy Blyth

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.

lizzy

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?

Rinske

lizzy wrote: »

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!

It seems that it calculated the 145 to be including the VAT on the 65%:

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!

lizzy

Yes I had got to that too.... it took a while ... - Many Thanks Rinske I worked it round to that too