VAT Codes User Manual

 CONTENTS

Pre-requisites for Products

Does this apply to me if I’m having a data import?

What is a VAT Code?

Do I need to have VAT codes?

Creating VAT Codes

Pre-requisites for Products

Whenever you enter details of a product into Cybertill, as well as entering the obvious things (e.g. name and price), there are other less-obvious fields that it will probably be beneficial to fill in, if you’re to get the best out of the system later. 

For example, every product can have a VAT Code assigned to it. 

This means that before you save any product details, you should probably enter a list of VAT Codes into the system first. 

Were you to try and create a product before entering a list of VAT Codes, you’d come across a box prompting you to “Please select a VAT Code” – but there aren’t any VAT Codes available to select!  And although you would be allowed to leave this box blank if you really wanted to, chances are you’d regret it later, because you won’t be able to use certain areas of Cybertill at all without having this kind of information saved.  (For example, without assigning a VAT Code to each of your products, you won’t be able to report on sales of vatable vs non-vatable items.) 

This principle applies to a number of ‘important fields’: 

• Suppliers 
• Brands 
• Seasons 
• VAT Codes 
• Categories 
• Stock Refs 

We’d recommend that you take the time to enter all your VAT Codes in one big go. Were you to try entering your VAT Codes (for example) as and when you need them, you’d end up having to flit back and forth between the “create new product” and “create new VAT Code” pages to do it – and it usually takes more time that way. 

Does this apply to me if I’m having a data import?

No. If Cybertill is performing a data import for you, you should be entering all of these ‘important fields’ straight into their import spreadsheet instead. 

We would recommend that you read through this manual anyway, though, because it will give you an understanding of what each of these prerequisites are for – and, you’ll need to know how to add new VAT Codes yourself in future. 

Note: Retailers who wish to import product data themselves using the Data Import Manager will need to follow the instructions in this manual, because the rules are a little different. 

What is a VAT Code?

A VAT Code is the amount of Value Added Tax applied to a product by the government. Not all items are Vatable. For clarification on which products are/aren’t vatable and the VAT Rate that should be applied, go to www.gov.uk. 

For example, before a retailer can run a report they need some way of telling Cybertill that a product has ‘Standard’ VAT. This is where VAT Codes come in. 

Whenever you enter the details of an item into Cybertill, as well as entering the obvious stuff (name, price etc), you should ensure you set its applicable VAT Code 

Do I need to have VAT codes?

Every item must have a VAT code assigned even if you aren’t going to run a report for VAT figures. 

Creating VAT Codes

• Start by logging into RetailStore/ CharityStore with your Username* & Password*. 

• select Value Added Tax Setup. 

The VAT Code List will open, listing all VAT codes set within the system. Two of these ‘Standard’ and ‘Zero’ will have been created by default. 

Depending on what products you sell, you may wish to create additional VAT rates for “Exempt” and/or “Reduced” (for example). 

To do so,  

• start by clicking the New link at the bottom.  

You’ll be taken to the New VAT Code page:

In the Name* field,

• enter a Name for the new code you are creating. 

This helps you identify which code you are later assigning to a product. 

If you wish for the code to be active, 

• ensure the Active field is ticked. (This should already be ticked as default). 

In the Code field,  

• enter an abbreviated code for this VAT rate. 

Example: ‘Exempt’ could be abbreviated to “EX”. 

The next field is labelled Is margin scheme. With VAT Margin Scheme, any time you sell an item that is associated with that VAT code, the system will calculate the VAT on the difference between the cost and the selling price. 

Example: if you buy an item for £70, then sell it for £100, the system will only calculate the VAT on the £30 difference. If you would like to apply this margin scheme to your code, 

• tick the box. 

Next,  

• enter the appropriate VAT rate in the Rate box. (Just type in a number; don’t put a % symbol in there.) 

Lastly,  

• click the Save button.   

You’ll see a success message at the top of the screen: 

• Click the Back to list link at the bottom of the page. 

Your new VAT rate will now appear in the VAT Code list.