Group sessions

Group sessions were held over the final quarter of 2020 to keep customers up to date with the system changes planned and Q&A’s. These have now finished but we continue to hold these to give users the opportunity to keep up to date with the latest system changes, click here to see the upcoming sessions and book your tickets.

1 VAT
- 1.1 VAT rule changes
  - 1.1.1 VAT on goods sold to the EU
  - 1.1.2 VAT on services
  - 1.1.3 Useful references
- 1.2 VAT in Vision
  - 1.2.1 Purchases
  - 1.2.2 Sales
2 Duty Rates
3 Country ‘EC Marker’
4 Order “Under Bond Type’s”
5 Importing/exporting
6 Accounts systems
- 6.1 Xero
- 6.2 Sage
7 Northern Ireland
8 Other questions

VAT

VAT rule changes

VAT on goods sold to the EU

If you’re selling goods to EU consumers, distance selling arrangements will no longer apply and you will be able to zero-rate the sales. VAT registered UK business will continue to be able to zero-rate sales of goods to EU businesses.

VAT on services

The main VAT ‘place of supply’ rules will remain the same for UK business as such no changes are planned.

Useful references

Gov.uk - Check when you can account for import VAT on your VAT return from 1 January 2021

Gov.uk - Complete your VAT return to account for import VAT

Gov.uk - Changes to VAT treatment of overseas goods sold to customers from 1 January 2021

Gov.uk - Complete your VAT return to account for import VAT from 1 January 2021

Gov.uk - Value Added Tax EU Exit Transitional Provisions

Gov.uk - How to report EU sales made on or before 31 December for VAT

VAT in Vision

After the EOTP and before using the system for anything else, users are advised to update:

VAT Code Maintenance (Admin > Maintenance > VAT Code Maintenance)
- The EC Exempt tickbox should be moved to ‘Exempt Transactions’
- The EC Zero tickbox should also be moved to ‘Exempt Transactions’
Customer & supplier VAT codes, which will post the update through to the connected accounts system automatically. This must be done before using the accounts. Check that your connected accounts system permits this kind of change, if it does not then a new customer / supplier account will need to be created and the existing record archived.
- Suppliers previously using a ‘Suppliers in EC’ VAT code should be changed to the ‘Exempt’ VAT Code.
- Customers in the EC should be changed to ‘Exempt’

Check underneath the ‘Accounts systems’ heading at the bottom of this page for advice published by your provider.

Purchases

See: 🟤Purchases Menu (POP) for Purchase VAT logic in VC.

The general rule is if the purchase order is for stock going into a bonded warehouse and the supplier is from the EU then we use the VAT code defined as ‘EC Exempt’ in VAT Code Maintenance, or if the import is from the rest of world then we’ll use the VAT code defined as ‘Exempt’.

Sales

A change will be automated in your system at the end of transition period which will result in any new ‘EC Warehouse’ sales orders defaulting to the same VAT code currently used for export orders.

Duty Rates

After the EOTP, users will need to update the customs duty rates in ‘Duty Rate Maintenance’ as customs duty will be charged in GBP instead of EUR and as such the UK government have published the Gov.uk - UK Global Tarrif detailing all of the changes. For help with this, see: Products.

Country ‘EC Marker’

United Kingdom will remain set as ‘GB’ and EU countries will remain as ‘EC’, all others will remain as ‘Other’, no changes are planned here.

In older versions of Vision Commerce, the stock valuation reports only include customs duty for stocks received from non EU countries. As of VC v2020.2.1, this has been changed to remove this check and rely solely on the ‘Customs Duty Paid’ marker (set for stocks when receipting from the PO), as such customs duty will only be shown if ‘Customs Duty Paid’ was unticked at the time of the stock receipt.

VCCloud customers will be automatically upgraded to this version in 2020 to ensure readiness for the EOTP, other customers are advised to upgrade or migrate to the VCCloud platform where updates are automatic.

Order “Under Bond Type’s”

After the EOTP, Vision Warehouses will continue to support the use of under bond type ‘E' (EC Warehouse). Although it’ll continue to be separate to type ‘X' (Export) this will actually be treated the same as an export order but for certain submissions and documentation it’s necessary to keep these separate going forwards.

See WMS customersarchived for the latest dates and customers are also advised to check with your warehouses.

Importing/exporting

Accounts systems

Xero

https://www.xero.com/uk/resources/brexit/

Postponed VAT Accounting blog post: https://www.xero.com/blog/2020/12/faster-vat-recovery-uk/

How Xero calculates the VAT return box amounts: https://central.xero.com/s/article/How-VAT-works-in-Xero-UK#HowXerocalculatestheVATreturnboxamounts

Sage

https://www.sage.com/en-gb/brexit/

Northern Ireland

We are introducing a new order type for orders going to Northern Ireland underbond.

A new system is in place for shipping goods to Northern Ireland, the warehouse have to make entries for those orders into a new electronic system.

Order Type Code	Type of Order

Order Type Code	Type of Order
N	Northern Ireland Duty Paid Orders. This will be automatically set for ‘Excise Paid’ SOs with a BT* delivery postcode.
K	Northern Ireland Underbond Orders. You will need to select this type for any underbond orders to NI.

Changes for this will be implemented into the sales order entry screen for the first release of 2021 until they are introduced you can continue to use the existing codes.

Commerce customers

VAT