Do I need to enter any VAT coding in Agresso?
As far as possible, the treatment of VAT in the Agresso system is automatic, and depends on the existing set-up of Projects, Products, Suppliers, etc.
How can I check the VAT treatment on a purchase invoice against the coding in Agresso?
The Tax System (aka Tax Category) reflects the rate on the invoice:
- STD Standard-rated
- LWR Lower rate
- ZERO Zero-rated
- NTX No tax
I am buying from an overseas supplier, how is this dealt with in Agresso?
There are Tax Systems (aka Tax Category) which are to be used with overseas suppliers. These take account of whether the purchase is:
- Goods or Services
- From the EU or outside the EU
For a complete list of Tax Systems, see web reference.
How do I know the VAT treatment of my income?
When entering a Sales Order, the tax code is generated by the Sales Product. All Sales Products begin with S-. Where there is a choice of VAT treatments (e.g. depending on whether the customer is a student or not), the appropriate product should be used.
How do I know if I can recover VAT or not on purchases?
In practice, this depends on whether the purchase is attributable to a taxable supply. This will normally be clear from the project on which the transaction is taking place. Budget projects, short courses, sundry grants, and general funds are normally exempt and so VAT on purchases are normally coded NR. Other services rendered (AA-*) accounts are normally VATable and therefore VAT can be recovered on purchases. Research grants and contracts can be either depending on the sponsor type. In this case, you will be told the VAT position when allocated an project.
In Agresso, recoverability is set by a separate Attribute (VAT_Recovery), which is automatically generated, based on the Project, e.g.:
- RE-BB0360 FR Fully recoverable
- BB-EE1GEN PR Partially recoverable
- RC-CH0215 NR Non-recoverable
Are there certain types of expenditure where VAT is never recoverable, whatever the account?
Yes, you can never recover VAT on business entertaining.