• Registered: 02/26/2015
  • Posts: 1

Topic: Setup for non VAT registered company

I am new to front accounting, and have basic accounting experience, very impressed so far with ease of installing and use as I've 'played' with it. 

However, I am a small sole trader, below the threshold for UK VAT registered.  How is that normally set up?

Do I just set up as if VAT registered?  I would prefer not to show VAT on invoices in case it misleads customers and they try to reclaim it.

At some future point, I may need (or choose) to register for VAT, so would like that to be relatively straightforward.

I've looked in the wiki and forum but couldn't find anyone in a similar situation.

Also, I currently account on a cash basis, do I need to do anything to handle that? Just trying to keep things simple so my accounting overhead is minimised!!

Many thanks,

rolinger

2 Reply by apmuthu (edited by apmuthu 02/26/2015 10:50:48 am)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Setup for non VAT registered company

First of all the UK Chart of Accounts is broken if taken from the official pkg repo. After installing it from there, just update the en_GB-general.sql file from my GitHub Repo. Just upload the said sql file overwriting the one in the sql folder and then create your UK company. Let your default company be created with the en_US-new.sql and your actual company be created with the new UK sql file.

When entering your items, just choose Tax Exempt for now. When you get to qualify for VAT, then change the settings to Tax in the items. All the old invoices will remain in their Non Tax state.

apmuthu's Website

  • gj6n68
  • Senior Member
  • Offline
  • From: UK, India
  • Registered: 02/14/2016
  • Posts: 81

Re: Setup for non VAT registered company

Hello again,

Just wondering if this UK CoA have been fixed now or would I still need to perform below procedure for correct CoA files before setting up a new UK company ?

Also, not sure if this is right place to ask, but how can I set up taxation where by I can reflect the VAT enteries for:

1. EU acquisitions to UK(where I need to pay 20% in UK to govt, instead of paying it to EU supplier),

2. Domestic UK purchases (where VAT is paid to supplier)

3. Sales in EU and outside EU(eg. India/China), where I don't charge any VAT,

4. Sales in UK where I charge VAT.

Would I need to set up mutiple GL accounts to capture above scenarios for purchases/sales separately ?

Any help would be appreciated.

Thanks
GJ

apmuthu wrote:

First of all the UK Chart of Accounts is broken if taken from the official pkg repo. After installing it from there, just update the en_GB-general.sql file from my GitHub Repo. Just upload the said sql file overwriting the one in the sql folder and then create your UK company. Let your default company be created with the en_US-new.sql and your actual company be created with the new UK sql file.

When entering your items, just choose Tax Exempt for now. When you get to qualify for VAT, then change the settings to Tax in the items. All the old invoices will remain in their Non Tax state.

4 Reply by apmuthu (edited by apmuthu 02/21/2016 04:33:39 am)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Setup for non VAT registered company

Move to a country that does not charge (so much) VAT wink

The CoAs will not be updated in the v2.3 repo anymore judging by what I have seen hitherto in the last couple of years. The various CoAs have not been formatted in a standard way and hence is not amenable to easy comparison - that probably was not the intention but less diligence amongst the many contributors and little or no vetting while incorporating into the repo and/or not updated when the primary sqls changed would be the real reasons.

Whether you setup separate tax accounts or just use the filtered reporting in FA is a matter of choice.

The wiki and the forum posts abound with several examples. The search feature in the wiki is broken and unlikely to be fixed in the near future on priority.

Removing the VAT lines from the reports (repXXX.php) and placing them in the company's reporting folder will override the standard ones for that company.

apmuthu's Website