The Cardholder must ensure that VAT is correctly accounted for in relation to all Card transactions. The treatment of VAT on Card transactions is handled differently within the Qfis Purchasing Card Module. Due to the inability of some suppliers to identify VAT on transactions, the gross amount (ie including VAT) will be imported into Qfis from the transactional data provided by the Bank. If the transaction includes VAT, the onus is then on the Cardholder to identify which of the codes listed below should apply to the transaction. The system will then calculate the net and VAT amounts in the background.
PS - standard rated
PE - standard rated (EU import)
PR - standard rated (Rest of World)
Where VAT is not applicable to the transaction, the VAT treatment is the same as with purchase orders, eg, Z for a zero-rated UK purchase.
Failure to obtain a VAT invoice or VAT receipt from a supplier may result in the University not complying with VAT regulations or being unable to recover VAT on purchases made using the Card.
The requirement for a VAT invoice has been stipulated by HMRC but varies depending upon the level of capability of the supplier's card processing software, ie:-
Standard Transaction - VAT invoice required
Partial VAT Data - VAT invoice required
Full VAT Data - VAT invoice not required
a VAT invoice will show:
Ladders £100.00, VAT @ 20% £20.00, Total £120.00
a non-VAT invoice will show:
Ladders £120.00 inc VAT, Total £120.00
If the VAT amount is not shown separately then it is not a VAT invoice or VAT receipt and should be coded accordingly
There are special rules for coding services from suppliers, outside the UK, where the service is undertaken in the country where the supplier is located. Hence, you should contact the Tax and Relocation Accountant for advice (ext 3073).