Standard VAT Decrease to 21.00% from 21.50%
The Government announced on 9 December 2009 that the VAT rate would decrease from 21.50% to 21.00% from 1 January 2010. For full details please visit www.revenue.ie.
Opera VAT Change Options
All Opera customers will need to consider the following:
Option A - Using Existing VAT Codes
- Bill all outstanding SOP/ Invoicing documents (Quotes, Orders, Deliveries etc) before the end of 2009
- In System – VAT Processing, locate the required Rates (Sales & Purchases) and if Rate 2 is not populated put 21.00 in the Rate 2 percentage field with Rate 2 Date of 01.01.2010. So it displays as follows:
- If Rate 1 and Rate 2 sets of information are already populated you may wish to change it to display as above
- On 1 January 2010, any outstanding documents entered in 2009 that have not been Invoiced will need to be edited as described in section 2 below
In January 2010, if you process/post Invoices/Credit notes with a 2009 date 21.50% will apply, whereas a 2010 date 21.00% will apply. (See section 3 for Invoicing/SOP exceptions to this)
Option B: Use new VAT Codes & new VAT Data Utility
- Review section 4 below which gives an outline on what the New VAT Data Utility can do
- Bill all outstanding SOP/ Invoicing documents (Quotes, Orders, Deliveries etc) before the end of 2009
- Create new VAT Codes for new Standard Rate VAT for both the Sales and Purchase Ledgers. See section 3 below
- Review section 4 for additional changes that you need to prepare or order the VAT Data Utility
- When installed on your system and all Invoice processing is complete for 2009, run this VAT Data Utility. (See section 4 for further information)
2. How to create a new VAT Code
To create a new VAT code, just follow these simple steps:
- Select the VAT Processing form from the System Module
- Select Add
- Enter the Trans Type and VAT Code as required
- Enter a description on the new VAT code
- Enter a VAT Rate 1 percentage of 21.00% with a Date 1 of 01/01/2010
- Enter the relevant Nominal Account for the VAT Control Account (If you are linked to Nominal)
- Save the record
Repeat the steps for further VAT codes as required and in all companies if you operate more than one company.
3. Opera SOP/Invoicing
When you enter new Documents/Quotes/Proformas/Sales Orders/Deliveries into Pegasus the VAT Rate is assigned at that stage. So all Sales Order Processing/Invoicing documents that were entered with a date of 31.12.2009 or prior that have not been progressed to an Invoice by 31.12.2009, where the 21.50% VAT rate applied, these will still have this VAT rate. If you progress these to an Invoice dated 1 January 2010 or later they will still carry the 21.50% VAT rate. On 1 January 2010 any documents not progressed to an Invoice, will need to be amended.
For example a Sales Order with 3 lines on it, all at 21.50% VAT code, that remains uninvoiced from 1 January 2010, will need to be amended, before it is Delivered or Invoiced. To do this locate the Sales Order, edit it, go to each line, edit each line on the order and save for it to apply the new 21.00% VAT code for each line.
4. VAT Data Utility
We have designed a new VAT Data Utility to further automate VAT changes where customers wish to use a new VAT Code. Where users wish to use the new VAT Code for the 21.00%, there will be three main areas that the VAT Utility will assist in making your life easier:
- Sales Ledger – Sales Code Table
- Sales Ledger – Customer Records
- Purchase Ledger – Supply Code Table
- Purchase Ledger – Supplier Records
- SOP/Invoicing – Documents/Quotations/Sales Orders/Deliveries
Sales Code & Supply Code tables - these existing tables have default VAT Codes attached to each one. If you plan to use a new VAT Code then you will need to edit these with your planned new VAT codes as required. The VAT Data Utility will automate this for you.
Sales & Purchase Supplier Records - if you use functionality where you specify default VAT codes on your customers/supplier records (ie Sales Accounts & Purchase Accounts), then you will need to edit these with your planned new VAT Codes as required. The VAT Data Utility will automate this for you.
SOP/Invoicing - Documents/Quotations/Proformas/Sales Orders/Deliveries - any of these which contain your old VAT code and wish to progress in 2010 will need to be amended to use the new VAT Code. The VAT Data Utility will automate this for you by replacing your old code with your new code and recalculate the VAT on these based on the rate in your new Rate 1 VAT Code.
2010 VAT Data Utility Price
- Customers with fully paid Annual Maintenance Contract Cover € 175.00 plus VAT
- Customers with no current Annual Maintenance Contract Cover € 295.00 plus VAT
Please Note
- Price includes the Data Utility and up to 1 hour Webex session to assist you installing the Utility and demonstrate how to run it on either company Z or a selected training company
- Additional ½ hour beyond the first hour assistance specifically related to this Utility, will carry an additional fee of €75 for each ½ hour or part thereof
If you wish to order this Utility please e-mail escalationteam@pegasus.co.uk with the following information:
- Your company name, address, telephone number and licence number
- Your contact name and e-mail address
- Confirmation of acceptance of fees plus VAT
On receipt a member of our support team will contact you to book the Webex session to log onto your system, and install the Utility for you and take you through the functionality.
