Question

Tax rate changes in Ireland from 1st September

  • 1 September 2020
  • 2 replies
  • 170 views
M
Rank
Userlevel 3
Badge +9

Hello,

The standard rate of VAT in Ireland will be temporarily cut from 23% to 21% as part of the Government July stimulus package .This new 21% rate of VAT will apply from September 1st 2020 until the end of February 2021.

We have been trying to figure out how to change this in our IFS setup in a friendly manner that does not involve changing specific parameters on report codes, customers or supplier levels.

It make sense that this could be done in the Tax Codes screen shown in my screenshot below, however we are getting an error message.

Your advise will be very much appreciated.

Many thanks and kind regards

Miguel

 

 

2 replies

MKG019
Rank
Userlevel 6
Badge +13

Hi Miguel, 

The best practice would be expire (valid until date) the existing tax code and create new tax code with the new rate with effective date. This will help you in audit and data governance as well. 

There is another option in IFS10 to change the tax rate, you need to go to company master tax control tab and use options to modify tax rate.. Please note you need clear all the transaction which is in hold before you  do this. 

Regards, 

Mukesh Gupta 

 

A
Rank
Userlevel 7
Badge +16

Hi Miguel, 

The best practice would be expire (valid until date) the existing tax code and create new tax code with the new rate with effective date. This will help you in audit and data governance as well. 

There is another option in IFS10 to change the tax rate, you need to go to company master tax control tab and use options to modify tax rate.. Please note you need clear all the transaction which is in hold before you  do this. 

Regards, 

Mukesh Gupta 

 

Just one remark: Expiring existing report code may block receiving of supplier invoices issued before September 1st. You may skip this step, nevertheless new tax codes should be created (e.g. 1R for standard rate 21)

Regards, Adam

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