EU-VIES Website changed this morning (05th March 2010)
Without notice, this morning, the EU VIES Website providing the VAT Validation functionality changed. If you are receiving error messages when using the VAT Validation add-in from Opes please contact Kevin Smith on ksmith@opesconsulting.co.uk for an update to resolve this problem.
OPES VAT package installed at 7
sites with significant further
interest being shown
7 sites now have the Opes Consulting VAT package installed on live or test systems with a significant number of other Elite Enterprise clients showing interest.
Allowing Elite Enterprise users to quickly and easily validate their client VAT numbers and so conform with the forthcoming EU VAT package regulations the package is notable for how simple and easy it is to use. The key element of the package the Validation control is so flexible in it's configuration that some clients have even taking to blocking bill production unless the client on a reverse-charge matter has a validated VAT number. Integrating it into the billing process and building it into the workflow is extremely easy, the whole thing is installed and configured in a couple of hours. Built into the package is also an Enterprise report that carries out a bulk validation check of clients and matters based on any generalized query required - there is no need to leave the Enterprise application to run the report, it can be scheduled, added to a queue just like any standard Elite report.
OPES announces custom Superbill function to activate Reverse Charge text on Whitehill bills
Part of the implementation of the VAT changes requires that you add specific wording to your bills in the case of clients subject to the Reverse Charge rules. Opes has developed a custom bill function that can be integrated into the Elite Enterprise superbills ensuring that the correct business logic is carried out and the correct wording placed on reverse charge bills. Whilst it is possible to carry out this functionality in the Whitehill bill templates this will often require an unnecessary replication of effort where multiple templates are concerned, also the logic required is quite complex and so, for ease of use and to ensure the performance of the system is not affected, it is much more sensible to do the work once on a large server, hence doing it in the superbill is much the preferred option.
Further information can be obtained from
Kevin Smith
Opes Consulting Ltd.
E: ksmith@opesconsulting.co.uk
W: www.opesconsulting.co.uk
T: +44 7876 568034
How to handle the Rate Change (Simply!)
Here's our simple solution to the rate change, which will allow you to carry on billing pre 31st Dec work at the old 15% rate even after the change and with the minimal amount of work:-
1) Change the rate on your standard input and output taxcodes to 17.5%.
2) Add 2 new taxcodes (1 input, 1 output) with NO end date and with a rate of 15%.
3) For matters that need billing from January and with WIP that spans the 31st Dec - issue 2 bills. On the first, include all WIP up to 31stDec, change the taxcode to the 'new' 15% code you set up in 2) and send out the bill. On the second bill, just include the WIP from 1st Jan onwards, leave the taxcode as your standard taxcode and send out the bill.
Two bills means no need to re-write your Whitehill templates to accomodate multiple chargeable rates and also you can sell it to your clients as being easier for their Purchase Ledger system as they won't have to worry about a 'blended' vat rate.
UPDATED - 11/11/2009
Here we go again - VAT part 2
You may be wondering how to handle the EU VAT Package which comes into operation on 01/01/2010 and how it affects you.
What does it consist of? Well in brief..
1 ) Changes to intra EU bills. If you send bills to EU clients in a different country you need to have their (validated!) VAT number available to report to your VAT Office. If you don't have their validated VAT number you need to charge VAT on your bills. If you have to charge VAT on non-GBP invoices you must have the GBP equivalent shown on the bill. THIS MEANS YOU NEED TO START COLLECTING YOUR CUSTOMER'S VAT NUMBERS NOW!!
2) Following on from 1) you will now have to report any intra EU supplies of Services to your VAT Office via a EC Sales List (this is the UK name - other countries call it something different). Remember EACH of your EU Offices will have to do their own reporting! Some countries, like the UK, will allow bulk electronic uploads of the ECSL. We have a Enterprise custom report that works with all versions of Enterprise and produces the appropriate XML file for upload to the UK HMRC site.
3) Date of supply. In principle, this changes from the date of the bill to the date that the last piece of work was done or, in the case of payments on account the date the bill was paid, whatever is the earliest. In practice however, HMRC guidelines do say...' As a general principle we will accept reliance on an invoice date or any other reasonable methodology provided it does not produce a manifestly inaccurate overall result. Ultimately it is up to individual businesses to identify the most appropriate methodology for their particular circumstances.'
4) On the input side check you're handling reverse charges correctly so that when you get an intra EU bill coming in with no VAT the onus is on YOU to report and to claim the 'phantom' VAT that would have been paid if your supplier was based in the same country. You need to set up and report specific input tax codes for these reverse charge supplies.
Oh, and the VAT Rate is going back to 17.5% so all those possible VAT rounding errors are going to appear again... Test your bill templates, superbill templates, whitehill templates and visbill templates again.
And finally from 01/04/2010 - NO more paper returns - you need to complete your VAT returns electronically - so you have to register with HMRC for online returns.
Obviously we're here to help if you find you're struggling with the implementation of these changes.