VAT Rate Change

💡This guide explains how to implement a VAT Rate change in BOS Professional. We use the increase of VAT from 15% to 15.5% and the date of increase, 1 May 2025, as an example.

Note

This process only applies to BOS Professional V23 and later versions.

Steps to Implement the VAT Percentage Increase

Info

You should already include a note on your Quotations that all prices are subject to VAT and will increase if the VAT Rate increases.

On the 1st of May 2025 (the day of the VAT changeover):

  1. Backup your database. Contact QuickEasy Software if you need assistance.
  2. Change the VAT percentage in VAT Types for all the VAT Types that use the old rate.
    1. Navigate to VAT Types Settings (Main Menu > Setup > Accounting > VAT Types (tab).
    2. In the VAT % column, change the Standard VAT Rate to 15.5%. (The new VAT Rate.)
    3. Update the Description, if applicable (e.g. Std or Standard), hereinafter referred to as Standard.
    4. If you have other VAT Types that use the Standard Rate (e.g. VAT Capital Goods, VAT Bad Debts), change those to 15.5% as well.
    5. Click Save (button).
  3. Update your Selling Prices:
    1. How to Update VAT Inclusive Selling Prices
    2. How to Update VAT Exclusive Selling Prices
  4. Update your Supplier Prices:
    1. How to Update VAT Inclusive Supplier Prices
    2. How to Update VAT Exclusive Supplier Prices
  5. Update your Services.
  6. Update any Transactions (e.g. Pending and Active Quotations) with the new VAT Rate.

How to Update VAT Inclusive Selling Prices

Note

If you use VAT inclusive prices, you must update your Selling Prices to account for the VAT increase. There are two steps:

  1. Increase your Selling Prices by the VAT increase.
  2. Apply the VAT Increase.
  1. Navigate to Materials Price Manager (Main Menu > Materials > Materials Price Manager).
  2. Set the following filters:
    1. Category = All.
    2. View = Units & Prices.
  3. Click View (button).
  4. Select all the applicable prices (click the first entry, scroll down to the last entry, hold down the shift key and click the last entry or press Ctrl + A).
  5. Click Actions (button) > Batch Update.
  6. From the dropdown list next to Batch Update select Adjust Sell Price by %.
    1. Enter 0.5 in the adjacent block to increase the prices by the VAT percentage increase (0.5%).
    2. Click Update (button).
    3. Confirm that you want to update your prices.
  7. From the dropdown list next to Batch Update, select VAT.
    1. Select Standard and Inc in the two adjacent fields.
    2. Click Update (button).
    3. Confirm that you want to update VAT.
  8. Verify that your GP% for each item is still accurate.

How to Update VAT Exclusive Selling Prices

Info

This action recalculates the inclusive Selling Prices by adding the new VAT Rate to your exclusive prices.

  1. Navigate to Materials Price Manager (Main Menu > Materials > Materials Price Manager).
  2. Set the following filters:
    1. Category = All.
    2. View = Units & Prices.
  3. Click View (button).
  4. Select all the prices (click the first entry, scroll down to the last entry, hold down the shift key and click the last entry, or press Ctrl + A).
  5. Click Actions (button) > Batch Update.
  6. From the dropdown list next to Batch Update, select VAT.
    1. Select Standard and Exc in the two adjacent fields.
    2. Click Update (button).
    3. Confirm that you want to update the VAT.
  7. Verify that your GP% for each item is still accurate.

How to Update VAT Inclusive Supplier Prices

Note

If you use VAT Inclusive Supplier Prices, you must update your Supplier Prices to account for the VAT increase. There are two steps:

  1. Increase your Supplier Prices by the VAT increase.
  2. Apply the VAT Increase.
  1. Navigate to Materials Price Manager (Main Menu > Materials > Materials Price Manager).
  2. Set the following filters:
    1. Category = All.
    2. View = Supplier Prices.
  3. Click View (button).
  4. Select all the prices (click the first entry, scroll down to the last entry, hold down the shift key and click the last entry, or press Ctrl + A).
  5. Click Actions (button) > Batch Update.
  6. From the dropdown list next to Batch Update, select Adjust Supplier Price by %.
    1. Enter 0.5 in the adjacent block to increase the prices by the VAT percentage increase (0.5%).
    2. Click Update (button).
    3. Confirm that you want to update your prices.
  7. From the dropdown list next to Batch Update, select VAT.
    1. Select Standard and Inc in the two adjacent fields.
    2. Click Update (button).
    3. Confirm that you want to update the VAT.
  8. Verify that your GP% on each item is still accurate.
  9. Check the prices against your suppliers' updated price lists.

How to Update VAT Exclusive Supplier Prices

Info

This update recalculates the inclusive Supplier Prices when you view the Materials Price Manager report.

  1. Navigate to Materials Price Manager (Main Menu > Materials > Materials Price Manager).
  2. Set the following filters:
    1. Category = All.
    2. View = Supplier Prices.
  3. Click View (button).
  4. Select all the prices (click the first entry, scroll down to the last entry, hold down the shift key and click the last entry or press Ctrl + A).
  5. Click Actions (button) > Batch Update.
  6. From the dropdown list next to Batch Update, select VAT.
    1. Select Standard and Exc in the two adjacent fields.
    2. Click Update (button).
    3. Confirm that you want to update VAT.
  7. Verify that your GP% on each item is still accurate.
  8. Check the prices against your suppliers' updated price lists.

How to Update Services

Note

This feature recalculates the VAT on Services. Its goal is to show you the correct prices when you edit a Service.

If you entered VAT Inclusive prices, you must manually increase those prices by the VAT Increase amount (e.g. 0.5%) else your business will absorb the VAT increase.

  1. Navigate to Services (Main Menu > Setup > Services).
  2. Select all the prices (click the first entry, scroll down to the last entry, hold down the shift key and click the last entry or press Ctrl + A).
  3. Click Actions (button) > Batch Update.
  4. From the dropdown list next to Batch Update, select VAT.
  5. Select Standard and Exc, Inc or N/A (select the setting you previously used) in the two adjacent fields.
  6. Click Update (button).
  7. Confirm that you want to update the VAT.

How to Update Transactions

Warning

The only Accounting Transactions you must update are those dated from the VAT changeover date (1 May) that were entered before you changed the VAT Setting.

You could update Pending and Active Quotations, Sales Orders and Purchase orders. You should send your customers the new Quotations that reflect the VAT Increase.

A Supplier invoice or an invoice for an Expense Payment may be dated on or before 30 April. If you capture it after changing the VAT Rate to 15.5%, you must manually edit the VAT Percentage when you capture the transaction. This edit is because you are not allowed to claim more VAT than you were charged.

  1. Change the VAT Percentage in VAT Types if not already changed.
  2. Navigate to the Item List View of the transaction you want to change (e.g. Quotations).
  3. Set the applicable filters (e.g. Status: Pending and Active).
  4. Click View (button).
  5. Select the entries you want to change. (Use Ctrl + left-click to select multiple items or Ctrl + Shift + left-click to select a continuous block of entries).
  6. Click Actions (button) > Batch Update.
  7. From the dropdown list next to Update, select VAT and fill in the adjacent fields as follows:
    1. Field 1: Select your Standard Rate (e.g. Standard) as the VAT Type.
    2. Field 2: Select Inclusive (Inc) or Exclusive (Exc). Keep the setting you usually use.
      • Note: If you use inclusive prices, you must also increase the price, or else your organisation will absorb the VAT Increase and have lower profit margins.
    3. Field 3: Enter the new VAT percentage (e.g. 15.5).
  8. Click Update (button).
  9. Confirm that you want to change the entries.

How to View and Verify the Applicable VAT Percentage

  1. Navigate to any Item List or Edit View.
  2. Click the Field Chooser (*) and check the checkbox next to VAT %.
  3. The column displays the VAT % that applies to the transaction.

How to Copy Transactions

  1. Once you change the VAT percentage under VAT Types, you can copy transactions as before.
  2. You can include the VAT percentage column to check that the correct VAT is applied (Click the Field Chooser (*) and check the checkbox next to VAT %).
  3. You may need to manually adjust the VAT percentage back to 15% in the following cases:
    1. Credit and Debit Notes. You may need to reset the VAT percentage to 15% so that the credit matches the invoice amount. You can use the Batch Update functionality to update multiple credit or debit notes.
    2. Supplier Invoices or Expenses dated before the VAT changeover (1 May). You may not claim 15.5% if you were only charged 15%. In this case, you must adjust the VAT percentage when you enter the transaction to reflect the VAT you were charged.

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