Managing the new 20% UK VAT rate

On 4th Jan 2011, the UK full VAT rate changes from 17.5% to 20%. This tutorial explains how to manage the VAT change in Bluestore Live.

To add the new rate, we need to create a 20% tax code and then add that to a new tax rule effective on 4th Jan 2011.

Create the 20% Tax Code

In your enterprise console, navigate to Configuration - Tax - Tax Codes.

Click 'create' and enter the details as per the screenshot below:

Save_tax_code.jpg

Press 'Save' to create the new tax code UK2.

 

Create a New Tax Rule

Navigate to Configuration - Tax - Tax Rules.

Click 'create' and fill in the dialogue as per the screenshot below:

Create_tax_rule.jpg

Click 'Save' to create the new rule.

 

Add the Tax Code to the Tax Rule

Edit the new tax rule TR7 and click 'Taxes' button.

This will bring up a new dialogue allowing you to select the tax code to be applied to this rule. Drag the 'VAT 20%' entry from the left to the right side of the dialogue.

Click 'OK' and then save the tax rule.

We have now created a tax rule that will calculate VAT of 20% on all taxable products starting from 4th Jan 2011.

The last step is to stop the 17.5% rate on the 3rd Jan....

 

Change the End Date of the Old Rate

Edit the current 'taxable' tax rule TR1and set the 'Date To' at 3rd Jan 2011.

This will ensure that at midnight on 3rd Jan, the old rate will stop and the new one will start.

These settings will automatically be sent to your stores and the rates will change on 4th Jan without any further intervention.

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