Frequently Asked Question

Setting up a Unit subject to VAT
Last Updated 3 months ago

You have a Property which contains one or more Units that are subject to VAT.
Follow these steps:

Note: Mention below of 'VAT %' is not referring to the VAT Rate - that is known to PropPack from elsewhere.

  1. If not already done, the Company needs to be set up as VAT registered.

    - Make sure you have set up a Supplier for HMRC - VAT will be paid to that supplier.
    - Go to Companies Maintenance
    - Click on Amend VAT Details and fill in:
    VAT Registration Number
    VAT is Paid to
    VAT Company Name: Fill in only if that name differs from the Legal Name
    - Exit

  2. If not already done, the Head-Office Cost Centre must be set to the appropriate VAT recovery percentage, as follows:

    Go to Properties/Unit/Tenants Menu: On the right, in the yellow box 'Select ANY Property' and enter the Company code (the H/O Cost Centre code is the same as the Company code) and then open Property Maintenance.

    The Property's VAT % should have been set automatically to 100%. This means 100% of VAT will be recovered from Expenses when posted against the H/O Property code.

    If this value is not correct (talk to your accountant), then change it to the appropriate value (as agreed with HMRC) - any value over 0, up to 100.

  3. The Units that are subject to VAT must be set to the appropriate VAT percentage. Go to each such Unit and open Unit Maintenance.

    Change the VAT Proportion for Unit from 0% to the appropriate percent. This is normally 100%. Occasionally HMRC may allow a lower figure.

  4. Once the above has been set up, accounting for VAT will be automatic within PropPack. The rent due value entered in Tenants Maintenance must be the Net value - PropPack will automatically add the appropriate VAT.

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