VAT Readiness UK

ERPNext Feature Requests
1

Hi I’ve been playing with the tax settings in ERPNext, but I’m not sure it’s up to UK spec yet:-

For Item Tax, are we able to:-

  • UK VAT has 3 options that the company can choose: Item Tax rounded to nearest 0.1p/0.5p/1p
  • The total tax is then rounded down to 1p
  • Can we mark Item Tax as price-inclusive, like you’re able to do with Sales Tax

I’m currently using Sales Tax but I fear this is in violation of tax rules as the VAT amount is not shown on item row

ref https://www.gov.uk/government/publications/vat-notice-700-the-vat-guide/vat-notice-700-the-vat-guide#vat-invoices-particular-situations-and-rules 17.5 and

2 Likes
2

Actually, I think what is needed first, is having Item Tax, rather than Sales Tax. Most of our items sold in UK are at 20% VAT, a few are 5% and some are 0%. It all depends on the item.

As such, the invoice needs a VAT % column, and a VAT £ column.

Which then is added up (from the column data) and also displayed above the grand total

3

Hello,

In ERPNext, tax is not defined in the item’s table, but in the separate table. You can manage itemised taxation in ERPNext. Please check the following help video to learn more about it.

We have many users from countries in which VAT tax is applied.