VAT recovery on car lease payments is restricted to 50% of the VAT charged if there is private use of the vehicle. Does anyone have a way to make this happen automatically? I was thinking something on the supplier record but can’t find anything there, or maybe on posting template?
(Using Apps10).
+19
Hello
You can create a new tax code with 50% deductible and make it default for the supplier. The tax code should look like the last line.
After defining a new tax code, make it default for the supplier.
Dont forget to complete posting control IP3 in case control type is other than AC1.
Hope this helps
+1
Thanks, I will give that a try this morning.
+1
Hi,
Thanks so much for your help so far.
I have set up the code and entered the invoice. The tax code on the line is set as my new code RST50% but the value is still coming through as the 20% value £251.29 rather than £125.65. I can’t seem to get it to change. Does something different need to happen at Preliminary Posting or can this now be corrected at Posting Proposal stage.
+19
Hello
Are you sure you set deductible % to 50? Please verify it.
+1
Thanks again, yes I have the deductible set at 50%
I noticed that if I change the line tax code from RST50 to STD20, and then change back again, the tax figures change to correctly show the restriction. But then when I try to save I get this message.
+19
Hello
your invoice status is PrelPosted. Cancel this invoice and create new one. Change the tax code before saving the invoice
It should work properly
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