Configure Tax for Gross VAT or GST

Modified on Thu, 29 Sep 2022 at 04:53 PM

To set your system up for Gross VAT / GST, please follow these instructions.

Info: These instructions need to be followed in order from Step 1 to Step 4.

Step 1 - Change the default value of your service items to include VAT / GST

Make sure that the price entered in your default charge is INCLUSIVE of VAT.

Example

The service shown below has a gross price including VAT of £15.00.
The current rate of VAT in the UK is 20%.
The client will be charged £15.00. This figure will show on the invoice.
The nett value of the service (excluding VAT) is £12.50.
The VAT element is £2.50.

Configure Tax for Gross VAT or GST with pet sitter plus

Gross VAT on Price Rules

Make sure that your price rules are also recalculated to INCLUDE VAT if required.

Configure Tax for Gross VAT or GST with pet sitting software

Gross VAT on the Service Order

The scheduled service has a default charge of £15.00 (inclusive of VAT) which shows on the invoice.

The VAT element of £2.50 is subtracted from the Gross amount leaving a net value of £12.50.

Configure Tax for Gross VAT or GST with cat sitting software

Gross VAT on the Invoice

Example of gross VAT showing on an invoice with the VAT element of £2.50 subtracted from the Gross amount leaving a net value of £12.50.

Example invoice with gross VAT in dog walker software

Step 2 - Check that Staff Pay is being Calculated Correctly

When creating or amending your service items, note that if you decide to pay staff based on a percentage, the system will calculate the percentage owing to a staff member based on the net figure (after VAT / GST has been deducted).

Configure Tax for Gross VAT or GST with dog walking software

Staff Pay Using a Percentage with Gross VAT

With Staff Pay set to 50% the staff member is paid £6.25.
This is 50% of £12.50 – the net figure after VAT is deducted.
If this was not your intended outcome then you may need to adjust your percentage payment or switch to using a fixed amount of pay.

Step 3 - Setup Your Tax Settings

Navigate to Admin > Settings > Tax Settings

See Set up my Tax Settings and complete the fields as appropriate.

Step 4 - Contact Support

Note: Once steps 1, 2 and 3 above are complete, you should contact support to request your system be changed to "Gross VAT / GST."

There is a "setting" behind the scenes that can only be set by support. Once set, all subsequent invoices generated will show prices "gross" of VAT / GST and VAT / GST will be deducted from the totals for the purpose of calculating VAT / GST outputs (as opposed to being added).

Info: Once you have contacted support, please do not create any more invoices in your system until support has confirmed that your system is now in "Gross VAT" mode.