User guide

p109
Big Red Book Accounts v5
Data for Pharmacy VAT Calculations
The Pharmacy VAT Calculations module is not integrated with the rest of the program. This means that the
information needed to calculate your VAT liability is not automatically extracted from the various books. In
order to use the module you must enter this information when prompted. The minimum information you will
need to use the calculations program is:

Total gross sales which need to be apportioned between VAT rates for the VAT period in question.
This figure can usually be obtained by printing the Cash Book Summary report. This figure
represents total sales for which the VAT element cannot be easily identified. It should include both
general shop sales and DPS receipts but exclude GMS receipts.

The VAT rates at which total gross sales are made.

Total net purchases of stock for resale during the VAT period, analysed by VAT rate. This
information can usually be obtained by printing the Purchases Book VAT Summary report for the
period in question.

The mark-up percentages to be applied to purchases at each VAT rate. This information should be
obtained from your accountant.

Total net purchases of goods or services not intended for resale, analysed into all applicable VAT
rates. This information can usually be obtained by printing the Purchases Book VAT Summary
report for the period in question.

Details of GMS Receipts for both Medical Ingredients and Medical Fees for the VAT period. This
information will come from the GMS print-outs you receive from your Health Board. You will also
need details of GMS Advance Adjustments and Withholding Tax from that report.

If applicable, total net purchases from other EU states both for resale and not for resale, analysed
by VAT rate. This information can usually be obtained by printing the Purchases Book VAT
Summary report for the period in question.
The above information is needed to apply the apportionment formula to the category of sales for which the
VAT rate is unknown. We will refer to this as the
Mixed Rate Category
of sales. You may also sell
categories of goods to which only one VAT rate applies and for which identification of VAT on sales is
relatively straightforward, e.g. Salon or Photography sales. We refer to these as
Single Rate Categories
of
sales. If this is the case you should maintain separate records of purchases and sales for these goods, i.e.
maintain separate Analysis Categories (column headings) in the Cash Receipts Book and the Purchases
Books. The program can calculate the VAT element on sales of such goods and incorporate them in
preparing a VAT report provided you enter the following information for these categories:

Total gross sales for each category of goods for which only one VAT rate is applicable. If you are
maintaining a separate column for each such category in your Cash Receipts Book this information
can be obtained from the Cash Book Summary for the period in question.

The VAT rates applicable to sales in each of the above categories. There should only be one rate
applicable to each category, e.g. 13.5% for Salon, 21% for Photography.

Total net purchases of stock for resale during the VAT period for each category. Assuming you are
separately identifying each category in the Purchases Book, this information can be obtained by
printing the Purchases Book VAT Summary report for the period in question.
Note: When you use this scheme you will require this information. However, once it has been entered the
program stores the information so that, when calculating VAT liabilities for subsequent periods, only
information relating to purchases for the current period need be entered.
The above information should be entered into the Pharmacy VAT module, after which the VAT figures for
the period can be viewed on the screen and printed in the form of a report.
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