How do I set up my system if I don't pay tax?

How do I set up my system if I don't pay tax?

Question/Problem 

My Company doesnt pay tax how can the system reflect this

Resolution/Solution 

If your company does not pay tax, then the stock items in your system should be set as exempt for tax. This can be done with a stock import.

Notes/Caveats 

If you pay tax on purchases, for your purchase orders the net = gross (the amount that it costs to purchase the items). You would then receive the invoice from the supplier and you pay the cost of the items including VAT to the supplier, but don’t record it in KCC as you don’t pay HMRC directly, only via your supplier.

Doing it this way would mean it is simpler to setup and easier to switch to paying VAT once you reach the threshold.


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