Global Accounting VAT Scheme for Used Goods
Global Accounting is a tax scheme that reduces administration and also reduced VAT payable.
It works in a similar way to VAT Margin but rather than working out the VAT on each individual item we just work out the difference in Purchases and Sales in the VAT period and pay VAT on that - NOT including the cost of parts used for repair.
To implement Global Accounting would be a simple report and would make the VAT return so much easier and less time consuming.
Example: 01/01/2022 to 31/03/2022
Purchases = £10,000 of Trade In devices
Sales = £17,500 of Trade In devices
VAT = sales minus purchases divided by 6, so: £17,500 - £10,000 = £7,500 / 6 = £1,250 VAT Payable
If anyone migrates from VAT Margin to Global Accounting the initial period takes the total value of all trade in stock on hand and adds it to all purchases, so the initial month might be negative for VAT owed.
Currently the reports do not work correctly for this as it brings in extra phones for some reason. I have to use the spreadsheet to do it.
Also on reports the total values only show the totals per page rather than the totals for them all.
This is a better way of doing the VAT as it can mean less VAT is paid - you cant reclaim VAT on items sold at a loss on VAT Margin, but on Global Accounting it is offset.
kevin
shared this idea
-
We have already a VAT margin feature available in RepairDesk that allows you to calculate VAT according to VAT margin standard. You can learn more about it from the following knowledgebase article:-
