Accounting software which can handle margin VAT


#1

I wonder whether anyone has a client they do bookkeeping for who has to work with margin VAT? These clients, for those who don’t know about margin VAT which I didn’t until this year, will usually be in the buying and reselling trade - jewellery, cars, antiquities etc buying at one price (no VAT) and selling at another with VAT on the difference between bought and sold price.

I am using Kashflow for this client’s accounts, and whilst it can handle the general reports for P&L, balance sheet etc, it can’t handle the margin VAT which means we can’t file VAT returns online through the software.

We are now looking for software, preferably online, which can handle this. I think that cost (to a degree) won’t be an issue - they would rather get the right software than scrimp on costs.

Any thoughts/ideas most welcome.

Dawn


#2

Hmmm… there should be an option to set up the “product” with different amounts of VAT Dawn - have you tried emailing support@kashflow.com to see if they can help?

If you think about the number of people who maybe sell non-VAT books alongside different products that do charge VAT, it should definitely be able to cope with this.


#3

Hi Caroline

The problem with it is that the VAT is 20% on the difference between bought and sold price - if you put the original purchase price in one line of an invoice as zero rated and then the difference in a another line at 20%, not all of the total sale price shows up in the correct boxes for the VAT return (zero rated is ‘seen’ as export and not in the UK market) - we’ve tried all sorts of different permutations in the product boxes and can’t get the figures to match the manual working out.

I also emailed Kashflow and they advise they don’t currently offer that service but have forwarded to their development team.

Xero also are the same although there is a work around for it but still not ideal.

Dawn


#4

Ah bummer! Looks like no one has actually created a system which beats Excel then? LOL!