VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi<BR><BR>Does anyone know of any other VAT rates than 17.5% or 5%? I was posting some purchase invoices today and the supplier's invoice stated VAT at 17.062% or something like it. Not noticed anything like this before, thought it a bit odd. Had someone been on the gin at lunch time!<BR><BR>J

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    Hi Jan,<BR><BR>I've never heard of that rate and I've worked in Purchase and Sales Ledger for 12 years. The only thing I can think of is that they have altered the VAT rate to take account of a settlement discount. Although I didn't think the VAT rate was altered. They usually work out the VAT of 17.5% on the discounted net figure.<BR><BR>I think maybe they have been on the gin like you say!!<BR><BR>Emma
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    There are four rates of VAT<BR><BR>Standard rated @ 17.5%<BR>Domestic Fuel, Childrens Car Seats, etc ( see schedule 7A) @ 5%<BR>Zero rated <BR>Exempt<BR><BR>There is a critical difference between zero rated and exempt, particularly for businesses that make zero rated supplies as the 'zero rating' enables them to claim back input VAT.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    Hi<BR><BR>If the items on the invoice are VAT-able at different rates, then the 17.06% may relate to the VAT in terms of Vat/net. But that would still be an odd way of presenting an invoice. Id give them a call.<BR><BR>Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    This may be the effective rate of VAT on the whole of the invoice net value. If a discount was offered the VAT is only payable on the discounted amount so leaving a couple of percent worth of discount without VAT.

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