A new year and new functionality for all Aqilla end users is being made available today with the release of 1401.
The VAT report has been enhanced to support the reporting of Reverse Charge VAT if it is applicable to your business. The reverse charge provisions are a simplification measure to avoid the need for suppliers to register in an EU Member State where they supply their services. Normally, it is the supplier of a service who must account to the tax authorities for any VAT due on their supplies. However, for certain services, where the recipient belongs in an EC Member State and the supplier belongs in another country, the position is reversed and it is the customer who must account for any VAT due. This procedure is referred to in this manual as ‘reverse charge’ but it is also referred to by some people as ‘tax shift’.
Accounting for VAT using the reverse charge procedure is not a complicated procedure in accounting terms. Instead of being charged VAT by the supplier, a UK business customer who receives any of the relevant services credits his VAT account with the necessary amount of output tax as if he had supplied the services himself and at the same time debits his account with the amount of input tax to which he is entitled under the normal rules. The practical effect of this is that there will be no net tax payable on the transaction except by businesses which are not entitled to full deduction of input tax, such as those which are partly exempt.
When services are purchased within the EU, and the VAT on the purchase is recorded at zero rate, the standard rate of VAT should be reported in both Box 1 and Box 4 of the VAT 100 report. To support this functionality three additional parameters have been included in the VAT Rate Edit function and the VAT Detail Enquiry has been enhanced to show as a separate section the breakdown of the purchase invoices that are applicable to the Reverse Charge VAT.
Note that the Reverse Charge VAT is purely for reporting purposes and is not recorded in the VAT accounts.
This report has been enhanced to capture the date that a transaction is processed on the bank statement and use this date for sequencing the report instead of the date that was entered in the ledger. This is designed to more elegantly cope with the potential delayed presentation of cheques. Thus if a cheque is processed in the ledger on the 15th December but is not processed into the bank account until the 5th January, the report will show the cheque as being processed on the 5th January.
The Processed Date is obtained from the downloaded bank transactions using Automatic Bank Reconciliation. If the manual Account Reconciliation function is used the Processed Date is set as the Cut Off Date for a specified match.
A new flag has been added to the Personnel user information to explicitly define which licence type applies to the user. This flag defines what fees will be applied and what tabs are available (subject to any additional restrictions imposed by the user’s roles and permissions). The available settings are as follows:
Note when changing the user type tick the green button to acknowledge that the billing will change accordingly AND then tick the second green button at the bottom of the screen again.
E-book: Dispelling the (five) myths of accounting in the Cloud
Month or year end doesn’t have to be slow or difficult. Here is a best practice guide to the busiest times of the accounting and finance year with 5 tips to facilitate a quicker and more efficient period end.
