How to account for VAT using the Tour Operators Margin scheme

The Tour Operators' Margin Scheme (TOMS) can be used by businesses with an establishment in the UK who buy travel, holidays and certain other services from an EC member state and sell them to a traveller, that is a person rather than a business, in the UK. The scheme was introduced as part of the EC VAT system to provide uniformity for all EC member states. To create a VAT Adjustments nominal codeOpen the Company module, from the Links pane click Nominal Ledger then click Record. Sage Accounts v11.xx and below - Open the Nominal Ledger module then click Record. The Nominal Record window appears. Complete the Nominal Record as follows: In the N/C box, enter the required nominal code, for example, 4999. In the Name box, enter a name for the nominal code, for example,...

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Posted in: margin scheme,tour operators

How to account for VAT using the Margin scheme for second hand goods

VAT is normally charged on the full value of goods sold, but for second hand goods, such as cars, works of art, antiques and collectors items, your output VAT is calculated on the difference between the selling price and the purchase price of the goods. This is referred to as the Gross Margin. To create a product record for goods included in the VAT Margin schemeOpen the Products module then click Record. The Product Record window appears displaying the Details tab. Complete the Product Record window as follows: In the Product Code box, enter the product code to be used for the item. In the Description box, enter the description for the item. In the Supplier Account box, enter the supplier's account reference. In the Tax Code box enter T9. Enter other...

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Posted in: marginal scheme,second hands goods