Hi. I run a pub and on of the annoying things I have to now do is pay the VAT on fruit machine income. Sadly I have to pay ALL the VAT on the take but my income is only a percentage, that is variable, of the take the VAT is payable on.
For instance.
a) Pub Share Income from Fruit Machine (ex VAT) = £250
b) VAT Payable on total Take = £35.24
How do I put this in without some long complicated way of using contra postings etc? I'd just like to be able to record the ex-VAT income on one line and the VAT on another. I have been trying to do this but it means my trial balance and my VAT Account are always out of sync with my VAT return, as the VAT return doesn't pick up the "standalone" VAT entry.
Help!!!!
Hi Rob,
The simplest solution is to just change the VAT rate. So in your example the VAT rate would be 35.24/250 = 14.096%. You would therefore create a Money Received Transaction with an amount of £285.24 and VAT 14.096%.
Note that you don't need to create an invoice - you can simply record this as a Money Received transaction with the Type field set to 'General Payment'
Regards,
