Contents1. Introduction to VAT
2. The University and VAT in Oracle
3. Purchasing in Oraclea. “VAT TREATMENT” fieldb. “PRIMARY INTENDED USE” field: Recoverable
VATc. European Suppliers and INTRASTAT
4. Income
5. VAT Rate change 4th January 2011
1. Introduction Value Added Tax (VAT)
There are three rates of VAT
The rates are: standard – currently 17.5% (20% from 4thJanuary 2011) reduced – 5% zero – 0%
There are also some goods and services that are: exempt from VAT outside the scope of VAT
Output / Input VAT
2. Cardiff University and VAT
http://www.cf.ac.uk/fince/servicesstaff/corporatefinancialservices/vat_1/index.html
Income
Teaching Income Research Income Other Income
EXEMPTe.g. Tuition Fees, Short Courses,
Conferences
VATABLEe.g. Industry
FundedResearch
NON-VATABLE e.g. Research Council Grants, Charity Funded
Research
VATABLEe.g. Services
Rendered Contracts,Sale of Goods
Industrial CASEAwards, Graduation
NON-VATABLEe.g. Room hire,
Donations,Structural funds
Partial Exemption
Oracle Tax EngineThe tax engine looks at
The Supplier location & tax set up AND
The Customer location & tax set up
before determining the tax rate to apply which in Oracle becomes the “VAT Treatment”
http://www.cf.ac.uk/fince/servicesstaff/corporatefinancialservices/vat_1/index.html
“VAT GUIDANCE – purchasing in Oracle”
3a. Oracle and VAT – “VAT Treatment” field
denotes treatments generating Zero Rating Certificates
Used for books/public transport/printing where no certificate required
Iprocurement Example
Example 1Booking a Hotel Room
Logged in as the iprocurement Approver
Finally – Approver can view the VAT element
Example 2 – Equipment Zero Rating
Input the relevant details and Add to Cart
View Cart and Checkout
Checkout
By entering CU% in the VAT Treatment field
“VAT treatment” fields
3b “The Primary Intended Use” field: when VAT is recoverable
This field should NOT be used UNLESS you are instructed to do so by Finance or RACDV for a particular School/Division Activity
Projects Set up
Example 3 – VAT recoverable activity
Finally – view the Recoverable VAT element
Country Code Country Code Country Code
Austria AU Germany DE Neth’lands NL
Belgium BE Greece GR Poland PL
Bulgaria BG Hungary HU Portugal PT
Cyprus CY Irish Republic
IR Romania RO
Czech Republic
CZ Italy IT Slovakia SK
Denmark DK Latvia LV Slovenia SI
Estonia EE Lithuania LT Spain ES
Finland FI Lux’bourg LU Sweden SE
France FR Malta MT UnitedKingdom
GB
3c Purchasing from the European Communityhttp://www.cf.ac.uk/fince/resources/VAT%20Guidance%20-%20Purchasing%20from%20the%20EU.pdf
INTRASTAT
SCHOOL
ORDER NUMBER
SUPPLIER NAME
EU COUNTRY
Have you supplied a Zero RatedCertificate with this order
YES or NO(delete as appropriate)
Nominal Ledger Code for Payment
HMRC Commodity CodeUK Trade Info : ICN Online Application
Item Description for HMRC Verification of Commodity Code
Weight of Goods (in Kgs)
Total Cost of Order (estimate if invoice not yet received)
Contact Details : Name Extension Number
Income
Teaching Income Research Income Other Income
EXEMPTe.g. Tuition Fees, Short Courses,
Conferences
VATABLEe.g. Industry
FundedResearch
NON-VATABLE e.g. Research Council Grants, Charity Funded
Research
VATABLEe.g. Services
Rendered Contracts,Sale of Goods
Industrial CASEAwards, Graduation
NON-VATABLEe.g. Room hire,
Donations,Structural funds
4. Income
Sales Invoice Requests
The following activities are subject to VAT at Standard Rate butare often incorrectly treated on the Invoice Request:1. Graduation Ceremonies2. Sponsorship Income, where sponsor is not simply donating
money3. Industrial CASE studentships4. Services supplied to non-eligible bodies5. Sale of second hand goods
The following activities should be EXEMPT from VAT1. Short Course or Conference Income2. Request for Donation from a business
Sales Invoices and the EC
VAT increase 4th January 2011
20% Rate on all VAT invoices issued on or after 4th January 2011 AND issued within 14 days of the transaction.
If the transaction was performed BEFORE 4th January 2011, VAT may be charged at 17.5%.
Recommend:
1. Purchasing - Place orders and receipt goods/services prior to 4th January 2011
2. Sales – Invoice clients prior to 4th January for work done to avoid queries
email [email protected] with specific queries
Review
• The University and VAT in Oracle
• Purchasing in Oracle– “VAT TREATMENT” field– “PRIMARY INTENDED USE” field– European Suppliers and INTRASTAT
• Income
• VAT Rate change 4th January 2011