< Tax Settings < Gross VAT / GST
The UK and Australia operate similar systems of VAT / GST. In the UK the system is referred to as VAT (Value Added Tax) and in Australia it is referred to GST (Goods & Services TAX). This is also the convention for taxation in European countries.
It is often a requirement, especially when selling to consumers (as opposed to businesses), that you state your prices on your invoices inclusive of VAT / GST (called gross VAT / GST). Pet Sitter Plus can be configured to show prices inclusive of VAT / GST on the invoices it produces. When configured in this way, VAT / GST is then deducted from the invoice total to work out the output tax for your VAT / GST return.
By default Pet Sitter Plus is configured to operate on a "nett tax" basis, which means that service prices are shown "nett of VAT / GST" and then VAT / GST is added to the invoice at the rate you specify. If you would like to operate on a "gross" VAT / GST basis, you need to contact support to let us know. We will then set a flag behind the scenes that will switch your database from "nett VAT / GST" to "gross VAT / GST".
To set your system up for Gross VAT / GST, please do the following:
STEP 1 - Change the default charge value of your service items to include VAT / GST >
When creating or amending your service items, insert prices "gross" of VAT / GST into the "default charge" box.
STEP 2 - Check that compensation is being calculated correctly
When creating your service items, note that if you decide to pay compensation based on a percentage, the system will calculate the percentage owing to a staff member based on the nett figure (after VAT / GST has been deducted).
STEP 3 - Setup Your Tax Settings
Navigate to ADMIN > SETTINGS > TAX Settings and set the value of your "Tax label", "Tax Code" and "Default Tax Rate %" fields as appropriate.
Finally, once items 1 - 3 are complete, please contact support to request that your system be configured for 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).
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You should contact support to request your system be changed to "Gross VAT" once steps 1, 2 and 3 above are complete.
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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.