The VAT Margin Scheme tax that is usually applied in the EU territory is the difference between what you paid for an item and what you sold it for, rather than the full selling price.
RepairDesk allows activating VAT Margin for specific categories and for specific products as well.
You need to follow a few simple steps in order to activate the VAT Margin for specific product categories and the Trade-In section in the POS.
To get started, go to your Store Settings and click on VAT Margin. You will need to enable VAT Margin and then provide the tax class name and percentage which you want to charge.
Once the margin is set, you will need to activate the VAT Margin for specific product categories. Based on your selection, VAT margin will be applied.
When you activate the VAT Margin for a specific category, the system asks you if you'd either like to apply your changes to all previously-created items or not. If you select Yes, then the VAT Margin will be applied to all the items created under this specific category. If you select No, then only newly-created items will have VAT Margin activated from them.
After activating VAT Margin for a product category or Trade-In, when you sell an item from that category, the tax will be applied on their margin, and not on the retail price.
Q: Is there any way to deactivate the VAT Margin for
specific items for certain categories?
A: Yes. You can update specific items and disable the VAT Margin. Once you disable the margin, your specific item will not fall under the VAT Margin scheme.
A: Yes. Once you enable the VAT Margin scheme, you need to select a specific category on which to apply it. Otherwise, the VAT Margin will not be applied to any product or any Trade-In item.
Q: Is VAT margin the same as other tax classes added in the
A: It is a tax class, but not the same as other tax classes. While most tax classes apply on the retail price of the product being sold, the VAT Margin is applied on the profit earned or the margin of the product.
Q: What if I sell the item with a retail price which is less then cost price what will be the impact on profit calculation?
A. in case of loss, or breakeven point profit is not calculated. negative profit will have impact on the report and it will disturb the net vat margin tax payable.