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Re: VAT Setup



Terrissa Evans wrote:
So, we are setting up a new business and needing a more powerful ledger.
We like SQL Ledger and are looking at it now and it's default chart of
accounts. Would the next step be to configure Vat taxes?
We are an IT Consulting business, 90% of our revenue is billable hours.
Should we implement VAT?

(presumes UK-based, by use of "VAT")

Are you asking if your business should register for VAT, or if you should set VAT up within SQL Ledger?

If the latter, then if you're VAT registered, you need to track VAT somewhere. It seems pointless to me to do it anywhere but the main ledger.

If the former, then your accountant would be a better person to ask - but my personal take would be to ask if your customers will typically be VAT registered themselves. If so, then it's a no-brainer. VAT registration doesn't add to your cost to the customer, but reduces your costs.

--
Adrian Chapman
Director, Trivas Ltd
07796 690210 - 01582 380021
Business on the Move
Mobility - Messaging - Infrastructure - Security - Remote Access