VAT Overview
This overview highlights how FIS changes the way in which UCL records VAT information for reporting purposes.
Input VAT (i.e. VAT on Purchases).
Our configuration of Oracle Applications enables us to draw a distinction between the VAT rate charged on a supplier's invoice and the recoverability of that VAT where it has been levied.
The VAT rate charged on a purchase is accounted for using the appropriate VAT code on input of the transaction to the system.
The recoverability of that VAT is determined by the account code segment to which the transaction is being posted. This will have been pre-set on the system.
NEW VAT CODE FOR MEDICALLY EXEMPT ORDERS
Please note that with effect from 7th April 2010, there will be a new VAT code specifically for purchases which are zero rated for VAT under the Medical Exemption criteria.
For more information please click here
Input VAT codes
The following input VAT codes will be used in Newfis:
|
Rate |
| S |
Standard rate VAT on goods and services (effective from 4th January 2011) |
20% |
S |
Standard rate VAT on goods and services (effective from 1st January 2010 to 3rd January 2011) |
17.5% |
S |
Standard rate VAT on goods and services (effective from 1st December 2008 to 31st December 2009) |
15% |
R |
Reduced rate VAT on goods and services |
5% |
C |
Purchase of goods from the EC (excluding UK) |
0% |
I |
Imports of services from any country |
0% |
E |
Purchase of exempt goods or services |
0% |
0 |
Purchase of zero-rated goods or services (from 7th April 2010, this VAT code should only be used for zero rated goods that DO NOT fall under the Medical Exemption Criteria) |
0% |
| M |
Zero Rated for VAT under the Medical Exemption Criteria (effective from 7th April 2010) |
0% |
N |
For IDT and expense claims with no identifiable VAT |
0% |
Completion of Input Forms (non-migrated departments)
On completing input forms such as PINVs and PPAN, for each line item, the amount entered in the form should be net of VAT (i.e. the price before VAT) and the relevant input VAT code (per the list above) should be entered.
Direct Input of purchasing documents (migrated departments)
iProcurement/Purchase Orders
Strictly speaking, VAT is not normally accounted for at the Purchase Order stage. However, as the iProcurement and purchasing module use commitment accounting it is important to use the correct tax code on iProcurement requisitions and Purchase Orders raised on FIS to ensure the commitment includes the full cost of a purchase (inclusive of VAT).
Purchase Invoices
The purpose of entering a VAT code at Purchase Ordering stage is for commitment recording only. When the Purchase invoice is received, if the VAT which is charged differs from that expected when the PO was raised, the data can be changed as no actual VAT account entry occurs until the Purchase invoice stage.
On input of the purchase invoice (or on 'match to PO') invoice lines can be input either inclusive or exclusive of VAT, depending on which option is selected. The system will then calculate the input VAT based upon this and the VAT code which was input for each line.
(Note that for both completion of forms and for input directly to the system, where foreign tax is charged on an invoice, the cost of that tax should be included in the cost of the item. The value should not be entered net of that tax).
VAT Rate Changes
In respect of the changes to VAT from 1st January 2010 details on how this change affects your use of FIS Accounts Payable are explained in the document below.
VAT Changes - Accounts Payable
Output VAT (ie VAT on Sales)
The following output VAT codes will be used in Newfis:
VAT Code |
Type |
Rate |
2 |
Supply of Standard-rated goods and services (effective from 1st January 2010) |
17.5% |
2 |
Supply of Standard-rated goods and services (effective from 1st December 2008 to 31st December 2009) |
15% |
0 |
Supply of Zero-rated goods/services or the export of goods outside the
EC. |
0% |
E |
Supply of exempt goods/services |
0% |
C |
Export of goods to the EC |
0% |
X |
Export of services |
0% |
Sales Invoices:
Completion of Input Forms (non-migrated departments)
When manually completing a Sales Invoice input form, the price, net of VAT,
should be entered together with the appropriate VAT code. The VAT should then
be calculated and the total invoice value entered.
Direct Input of sales invoices (migrated departments)
On raising an invoice on the system, the amount, exclusive of VAT should be entered,
together with the relevant tax code and the system will calculate the VAT.
Non-Invoiced receipts (migrated and non-migrated departments)
For sundry receipts the forms should be completed by entering the gross amount (ie the total value of the receipt) and the relevant tax code. It
is not necessary to calculate the VAT element and show it separately.
VAT Rate Changes
In respect of the changes to VAT from 1st January 2010 details on how this change affects your use of FIS Accounts Receivable are explained in the document below.
VAT Changes - Accounts Receivable
This page last modified
June 3, 2011
by Web Editor |
+44 (0)20 7679 2000 - Copyright © 1999-2006 UCL