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1. VAT - Automatically calculate VAT using the Marginal Scheme

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   17 comments  ·  For small businesses » Accounting features  ·  delete…  ·  Admin →
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   submitted  ·  AdminHannah G (Admin, Xero) responded

   Hi everyone, thanks for your interest in this idea.

   For now, I wanted to share that we're aware some users have the following process to record their transactions. The example uses a vehicle with a purchase price of £1500, and a sale price of £2000.

   1. Record the purchase of the vehicle on a purchase Bill for the full purchase price of £1500 with a tax rate of VAT Exempt. So the purchase is recorded in box 7 on the VAT return.
   2. Record the sale of the vehicle on an Invoice for the full £2000 - using the Tax Exclusive option, and then manually changing the VAT calculated to the required amount - £83.33 (i.e. 20% on the profit of £416.87 or 1/6 of £500) by clicking the small plus box above the Tax Rate.

   This will mean that you only charge £83.33 VAT for the overall profit figure, and ensuring the correct amounts are reflected in boxes 1, 3, 5 and 6.

   You could also create a custom invoice template to use with the invoices that hides the VAT detail. You'd need to insert the TaxInclusiveLineAmount field and remove the other Tax reference fields.

   Hi everyone, thanks for your interest in this idea.

   For now, I wanted to share that we're aware some users have the following process to record their transactions. The example uses a vehicle with a purchase price of £1500, and a sale price of £2000.

   1. Record the purchase of the vehicle on a purchase Bill for the full purchase price of £1500 with a tax rate of VAT Exempt. So the purchase is recorded in box 7 on the VAT return.
   2. Record the sale of the vehicle on an Invoice for the full £2000 - using the Tax Exclusive option, and then manually changing the VAT calculated to the required amount - £83.33 (i.e. 20% on the profit of £416.87 or 1/6 of £500) by clicking the small plus box above the Tax Rate.

   This will mean that you only charge £83.33 VAT for the overall profit figure, and ensuring the correct amounts are reflected in boxes 1, 3, 5 and 6.

   You could… more

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   Ashley Taylor commented  ·  15 February, 2023  ·  Edit…  ·  delete…

   Is there an update with regard to the VAT calculations?

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   Ashley Taylor supported this idea  ·  13 September, 2022

2. Dashboard - Show Current/Actual VAT liability

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   6 comments  ·  For small businesses » Accounting features  ·  delete…  ·  Admin →
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   working on it  ·  AdminEthan M (Admin, Xero) responded

   Hey everyone, just a quick update on this one, as it was shifted to delivered in error.

   Whilst we have refreshed the VAT dashboard widget with a new look, it does not display your current VAT liability - apologies for the confusion.

   We’ll be opening this idea back up to votes and feedback from the community.

   As the team have confirmed this is one they’re exploring, we’ll pop it in ‘working on it’ for now.

   Ashley Taylor shared this idea  ·  12 May, 2022