VAT Liability

[whimar]

Hi all,

 

We're currently trying to work out our need to register for VAT or not. WHMCS does not offer a way to do this out of the box and every ticket I've opened has merely told me to customise a report to do this. I've looked at the reports and still can't figure it out. I've even tried CSV dumps of the orders to try and work this out.

 

Basically we need to generate something that will show us the total revenue for all VAT charged countries (EU) for the past year.

 

Has anyone done this before? Or know an easy way to accomplish this?

[limevps]

The requirement to register for VAT is whether your company does, or will, exceed £77,000 of sales in the last year, or will exceed that limit in the next 30 days.

 

This isn't really something for WHMCS because your company might have sales that are outside of the WHMCS system.

 

Can't you do a dump of the invoice table? More to the point, don't you have an accounting system?

[m8internet]

As above, your accountant should advise you (if you are not currently registered, but are nearing the point where you need to be)

However if they only do your accounts once a year then you probably need to monitor this yourself (either your company or you in person)

 

The easiest method is simply to look at each months sales over the previous complete three months, then multiply by 4

 

WHMCS does offer an income tracker, but as explained above it only track sales within WHMCS

There are also flaws in the way in which gateway fees are calculated are entered, so I don't even use it for these purposes

I simply use WHMCS for control of accounts and do no rely on it for financial purposes

[openmind]

Hook up WHMCS with a real accounting program such as ww.xero.com and don't bother using WHMCS for accounting purposes. It's simply not accurate enough and gives you no control over correct bookkeeping.

[whimar]

The issue arises that VAT only applies to countries that are EU member states.

 

We are trying to determinate how to easily extract income based on sales to these countries. Its not simply a case of us multiplying our sales by 4 as we sell to non EU countries also.

 

Will these accounting packages be able to determine this as currently based on CSV dumps we provide to the accountant they cannot.

[m8internet]

We are trying to determinate how to easily extract income based on sales to these countries. Its not simply a case of us multiplying our sales by 4 as we sell to non EU countries also

Your accounts should show VAT and non-VAT sales, so you would use the non-VAT sales obviously

 

I myself keep monthly account (although they are actually four weeks) with sales by category

If your sales are this high then making this small change will make it easier, plus might reduce your accountant costs

 

I remember many years ago buying a business and it had just two account boxes for each year, VAT and non-VAT

The owner had no idea what their annual sales or profits were, all he knew was that the business was making money; you just can't do that nowadays

[whimar]

Your accounts should show VAT and non-VAT sales, so you would use the non-VAT sales obviously

 

I myself keep monthly account (although they are actually four weeks) with sales by category

If your sales are this high then making this small change will make it easier, plus might reduce your accountant costs

 

I remember many years ago buying a business and it had just two account boxes for each year, VAT and non-VAT

The owner had no idea what their annual sales or profits were, all he knew was that the business was making money; you just can't do that nowadays

 

 

I appreciate the advice; however I still do not understand how to get WHMCS to output some useable data that shows VAT eligible sales and non-VAT sales.

 

Assuming we have £100000 revenue, what would I need to do with whmcs to find out how much of that £100000 was from EU Member states to work out if we are at or approaching the VAT threshold.

[m8internet]

I appreciate the advice; however I still do not understand how to get WHMCS to output some useable data that shows VAT eligible sales and non-VAT sales

As above, you can't directly

However you can list income by client groups, so this might be an option, but only if you are not using groups already

Create one group, say non-EU non-VAT, and put these customers into that group

You can then view the sales from these customers

You can then view the total, deduct the group and that will give you the sales where VAT was applied

[whimar]

With 8237 clients I really do not think this will be possible. I would have thought that this would be a function that a lot of business would need to do at some point. Surely this should be part of WHMCS. I do not wish to use WHMCS for accounting, but if we cannot even get an export from it which is useable by our accountant then its not quite fit for purpose.

 

I think I'll post in the marketplace to see if any bright spark can generate a report for this.

[othellotech]

Basically we need to generate something that will show us the total revenue for all VAT charged countries (EU) for the past year.

Year, month, quarter ...

 

You should be putting the transactions from VAT registered clients in as separate entries into your accounting program, which will be able to produce some of what you're asking

 

We have a VAT Reporting pack/addon and custom reports are always possible

[disgruntled]

With 8237 clients I really do not think this will be possible.

 

 

Im wondering how you got to 8237 clients without considering this sooner and putting a mechanism into place.

 

You can use client groups, sure you will need to manually make the changes, but then you could also use an sql query as long as you know all off the EU states you can formulate a simple query that will update the clients and put the EU clients into VAT.

 

Infact, im sure matt has written something similar to this that completed the VAT rate change not so long ago, im sure that could be modified to fit you needs

[disgruntled]

for now im away as i have not slept since yesterday morning, if this hasnt been resolved by the time im back later i will be happy to take a look and knock up a quick php script to make the calculations for you.

 

It wont be anything special, just a simple table of client name, amount paid, tax paid then all that calculated to give the total paid and total tax.

 

simple additions but it should do what you want by pulling out your EU clients.