VAT Setup for Transaction Types Tutorials

• QuickEasy BOS has features to expertly handle most countries’ VAT or GST requirements.
• The software is also suitable for organisations who are not registered for either VAT or GST.
• Organisations can create an unlimited number of VAT or GST Types and allocate a percentage to it.
• Default VAT/GST Types are chosen when creating Transaction Types, including whether the VAT or GST should be considered Input or Output. However, these defaults can be edited when transactions are entered (e.g. if the supplier is not registered for VAT).
• The documentation refers to VAT, but the concepts are the same for GST.

These tutorials explain how to setup the VAT defaults for Transactions.

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How to Import VAT Settings when Creating Transaction Types

1. Navigate to Transaction Types (Main Menu > Setup > Transaction Types).
2. Double click the Transaction Type you want to edit.
3. Click Settings (tab).
4. Click Edit (button) on the top row.
5. Click Settings (button) next to Add.
6. Type VAT in the search block of the popup.
7. Click the applicable VAT Setting, or all the VAT Settings (use Ctrl + left click to multi-select).
8. Click Add/Update (button).

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How to Select a Default VAT Type

• For transaction types where VAT is applicable, select the Standard Rate VAT Type as the default (e.g. Bank Payments, Customer Invoices, Supplier Invoices).
• For transaction types where VAT is not applicable, select No VAT (e.g. Supplier Payments, Customer Receipts).  
• You can change the VAT Type when recording a transaction. Therefore, this selection only needs to cover most of the transactions, not all of them.

1. Navigate to Transaction Types (Main Menu > Setup > Transaction Types). 
2. Double click the Transaction Type you want to edit.
3. Click Settings (tab).
4. Click Edit (button) on the top row.
5. Navigate to this setting: Accounting > Default – VAT Type = Select a default VAT Type from the dropdown list in the Value column.
6.  Click Save (button).

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How to Select a Default Input / Output Option

• Categories explained:
  • Input + Standard Rate: Qualifying* expenses, inventory, and purchases.
  • Input – Standard Rate: Goods returned to suppliers if you claimed VAT on the original transaction and trade discounts received (amounts deducted on supplier invoices).
  • Input + Capital Goods: Qualifying* asset purchases.
  • Output + Standard Rate: Sales and services rendered to local customers.
  • Output – Standard Rate: Goods your customers returned that reduce your sales and trade discounts granted (discounts you reflect on customer invoices).

*To qualify you must have been charged VAT, you must have the required paperwork (Tax Invoice) as proof, and you must be allowed to claim VAT back for that type of expense or asset purchase.

1. Navigate to Transaction Types (Main Menu > Setup > Transaction Types). 
2. Double click the Transaction Type you want to edit.
3. Click Settings (tab).
4. Click Edit (button) on the top row. 
5. Navigate to this setting:
   1. Accounting > Default = VAT Category (Input/Out) = Select an option from the dropdown list in the Value column:
      1. N/A (e.g. Quotations)
      2. Output + (e.g. Customer Invoices)
      3. Output – (e.g. Customer Credit Notes)
      4. Input + (e.g. Supplier Invoices)
      5. Input – (e.g. Supplier Debit Notes)
6. Click Save (button).

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How to Select a Default VAT Inclusive / Exclusive Option

• Typically, customer and supplier invoices will exclude VAT because cost prices are VAT exclusive.
• In contrast, it is easier to record VAT inclusive amounts for expenses such as rent and insurance. 

1. Navigate to Transaction Types (Main Menu > Setup > Transaction Types). 
2. Double click the Transaction Type you want to edit.
3. Click Settings (tab).
4. Click Edit (button) on the top row. 
5. Navigate to this setting: Account > Default – Price includes VAT = Click the checkbox in the Value column to toggle VAT Inclusive or Exclusive. If checked the price will include VAT by default (but can be changed).
6. Click Save (button).

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