THE 2018 VAT CHANGE Updating VAT in QuickBooks Manually Creating new VAT Codes a VAT Checklist Here is a checklist of steps you must follow to update your VAT to 15% by creating new VAT Codes and VAT Items. As you follow the steps, check them off here when you've completed them. Steps Create New VAT Codes and VAT Items Enter the Code you have used here Assign Item VAT Codes: Sales Items and Purchase Items Assign Customer VAT Codes if needed Assign Supplier VAT Codes if needed Standard Capital Goods Capital Imports Use the VAT Wizard to set these up automatically Standard Imports Assign Account VAT Codes Update Default VAT Code VAT Preferences Update Memorized Transactions Update Progress Invoices and Business Forms Update Item Prices if needed Update any Memorized Transactions under Lists Memorized Transaction List Update any transactions such as Progress Invoices as well as other Business Forms Adjust Item Prices with optional rounding under Customers Change Item Prices
VAT Codes Here is a table of VAT Codes that will be required the codes shown are suggested codes and you may also create your own. If you need to create any additional VAT codes, you can follow the same instructions as in this guide. Code Description VAT Return Boxes CI5 Capital Imports 15% <14,A, N> VAT on Capital Imports C15 Capital Goods 15% Sales <4A, 1A> Domestic Capital Sales Purchases <14, N> Domestic Capital Purchases SI5 Standard Imports 15% <15A, N> VAT on Standard Imports S15 Standard 15% Sales <4, 1> Domestic Sales Purchases <15, N> Domestic Purchases SECTION 1: Create the new Standard Rate VAT Rate To set up new VAT rates manually, you will need to create the required VAT Items, assign these items to VAT Return Boxes for reporting, and finally link the new VAT Items to new VAT Codes. Step 1: Select Lists then select Item List.
Step 2: Select Item at the bottom of the screen and then select New. Step 3: To set up the Standard Rate VAT Item for sales, select VAT Item from the Type drop down box.
Step 4: Under the VAT Item Name and Description enter Standard 15% Sales. The VAT Rate will be 15%. From the VAT Agency drop down, select SARS. If you do not have a VAT agency listed as SARS, use the VAT agency that your current VAT is set up under. Select Domestic Sales for the VAT Return Box. Click on OK. Step 5: Create a new VAT Item for purchases. Under the VAT Item Name and Description enter Standard 15% Purchases. The VAT Rate will be 15%. From the VAT Agency drop down, select SARS. If you do not have a VAT agency listed as SARS, use the VAT agency that your current VAT is set up under. Select Domestic Purchases for the VAT Return Box. Click on OK.
Step 6: Create a new VAT Code for Standard Rate sales and purchases. From the Lists menu, select VAT Code List. Step 7: Select VAT Code at the bottom of the screen and choose New.
Step 8: Enter the VAT Code as S15 and the Description as Standard 15%. Select the Taxable option. Set the VAT Item for Purchases as the Standard 15% Purchases VAT Item created earlier. Set the VAT Item for Sales as the Standard 15% Sales VAT Item created earlier. SECTION 2: Create the new Capital Goods VAT Rate Step 1: Using the same steps above for the Standard rate above, create a new VAT Item for capital goods sales from the Item List screen.
Step 2: Under the VAT Item Name and Description enter Capital Goods 15% Sales. The VAT Rate will be 15%. From the VAT Agency drop down, select SARS. If you do not have a VAT agency listed as SARS, use the VAT agency that your current VAT is set up under. Select Domestic Capital Sales for the VAT Return Box. Click on OK. Step 3: Create a new VAT Item for purchases. Step 4: Under the VAT Item Name and Description enter Capital Goods 15% Purchases. The VAT Rate will be 15%. From the VAT Agency drop down, select SARS. If you do not have a VAT agency listed as SARS, use the VAT agency that your current VAT is set up under. Select Domestic Capital Purchases for the VAT Return Box. Click on OK. Step 5: Using the same steps above for the Standard rate VAT Code, create a new VAT Code for Capital Goods sales and purchases. Step 6: Enter the VAT Code as C15 and the Description as Capital Goods 15%. Select the Taxable option. Set the VAT Item for Purchases as the Capital Goods 15% Purchases VAT Item created earlier.
Set the VAT Item for Sales as the Capital Goods 15% Sales VAT Item created earlier. SECTION 3: Create the new Capital Goods Imported VAT Rate Step 1: Using the same steps above for the Standard rate above, create a new VAT Item for capital imports from the Item List screen. Step 2: Under the VAT Item Name and Description enter Capital Imports 15%. The VAT Rate will be 15%. From the VAT Agency drop down, select SARS. If you do not have a VAT agency listed as SARS, use the VAT agency that your current VAT is set up under. Select VAT on Capital Imports for the VAT Return Box. Click on OK. Step 3: Using the same steps above for the Standard rate VAT Code, create a new VAT Code for Capital Imports. Step 4: Enter the VAT Code as CI5 and the Description as Capital Imports 15%. Select the Taxable option. Set the VAT Item for Purchases as the Capital Imports 15% VAT Item created earlier. Do not set the VAT Item for Sales for Capital Imports. SECTION 4: Create the new Standard Imports VAT Rate Step 1: Using the same steps above for the Standard rate above, create a new VAT Item for standard imports from the Item List screen.
Step 2: Under the VAT Item Name and Description enter Standard Imports 15%. The VAT Rate will be 15%. From the VAT Agency drop down, select SARS. If you do not have a VAT agency listed as SARS, use the VAT agency that your current VAT is set up under. Select VAT on Standard Imports for the VAT Return Box. Click on OK. Step 3: Using the same steps above for the Standard rate VAT Code, create a new VAT Code for Standard Imports. Step 4: Enter the VAT Code as SI5 and the Description as Standard Imports 15%. Select the Taxable option. Set the VAT Item for Purchases as the Standard Imports 15% VAT Item created earlier. Do not set the VAT Item for Sales for Standard Imports. SECTION 5: Assign the new VAT Codes After you have created your new VAT codes, you will need to assign each new code to your sales items, purchase items, customers, suppliers and accounts. You can either do this following the creation of your new VAT code/s, or you can come back to this step later. We recommend that you only assign the VAT codes when you need to process transactions at the new 15% rate. Using the checklist, simply check each VAT Code once you have assigned it. That way you ll know that you ve updated them all. To access this screen, go to the VAT menu and click Manage VAT.
Step 1: Choose Assign VAT Codes. Step 2: Click on Bulk Change. A message is displayed recommending a backup. Click Yes to do a backup of your files. After the backup is completed, the VAT Code Bulk Assignment screen is displayed.
Step 3: Select each list that you want to change by clicking on the checkbox. From the drop down list, select the VAT Code to be changed from and in the next drop down list, select the VAT Code you are changing it to. When you have finished selecting the VAT Codes, your screen will look similar to the example shown (this will depend on your particular options). A confirmation screen will display once you have completed these steps. SECTION 6: Updating Company VAT Preferences Step 1: To make the new VAT Code the default on your company, go to Edit then Preferences.
Step 2: Select VAT, then select Company Preferences. Step 3: Change Taxable Items from your old VAT Code to the relevant new VAT Code (S15 in our example). SECTION 7: Remember the last few things from the Checklist Update any Memorized Transactions under Lists Memorized Transaction List. Update any other transactions such as Progress Invoices as well as other Business Forms. Update Item Prices if needed with optional rounding under Customers Change Item Prices.