Percentage of non vatable sales

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!

• Registered Posts: 196 Dedicated contributor 🦉
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.
• Registered Posts: 48 Regular contributor ⭐
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.
• Registered Posts: 36 Regular contributor ⭐
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?
• Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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!
• Registered Posts: 36 Regular contributor ⭐
Yes I had got to that too.... it took a while ... - Many Thanks Rinske I worked it round to that too