Hello,

For General ledger setup you need to:

• create one (or more...) tax codes in tax codes master (one of type VAT, to be used in regular sales and purchase process, and one of type Calculated VAT, if new rate is used in reverse charge mechanism)
• Usually - update posting controls (IP3 for purchase, IP4 for sales, IP9/IP10 for reverse charge and other depending on the process in use - for advance invoices, tax on payment etc.)
• usually - update tax code per account setup, if tax codes specific for tax accounts are in use

Setup in tax ledger depends on the way your tax reports are built, it is possible nothing is to be done, it is possible you need just to add tax code in report selection definition, but sometimes more complex setup related to new position and new calculations in the report are needed. It is difficult to explain it in general way.

Thanks for the response Adam.  It’s the tax ledger set up part that we’re not sure about.  There must be other UK users that are doing the same this month so hopefully someone can offer some guidance.

Hi Paula,

Did you manage to solve this? In addition to what was mentioned above around posting controls and tax code itself, the standard UK setup would include the following:

1. Tax Template field control - add the new tax code to the standard rate template fields 

2. In case you use tax books, map the tax code to the tax book

3. Potentially add any tax code text to be displayed in output documentations, if required

4. Map the new tax code to the tax reconciliation template to use the GL Tax Reconciliation Report correctly

Hope this fixes your issue!