How to change the VAT code in Sage Pastel Version 17 and older March 2018 The Treasury announced an increase of 1 % in VAT, effective from April the 1 st of 2018. Creative Minds prepared the following mini-tutorial for you to show you how to change the VAT percentage in Pastel. Sage Pastel is offering a free update for all active Support Cover clients. The best advice that we can give you is not to change this percentage too soon. To minimize changing default settings on your Pastel, we will create temporary codes for 14%, so that you can carry on using your existing VAT codes after the 1 st of April 2018. Please follow the steps described meticulously to ensure that the transition to the new VAT percentage is a smooth one for you and your business. Creative Minds Customer Service: Important: Creative Minds does not offer Sage Pastel support. This tutorial was created for Creative Minds customers only, but we have decided to share it wider as a service to all Pastel users. If you have any queries, please E-mail us at: info@minds.co.za Please note: All reasonable precautions have been taken in the preparation of this tutorial, including both technical and non-technical proofing. Creative Minds and any staff delivering this course on their behalf assume no responsibility for any errors or omissions. No warranties are made, expressed or implied with regard to these notes. Creative Minds shall not be responsible for any direct, incidental or consequential damages arising from the use of any material contained in this document. 1 P a g e
Steps to change the VAT percentage in Pastel Partner: Step One: Go to File and Open the company. Step Two: Make a Backup of this company on a Memory stick. Step Three: Click on Setup, move the mouse down to Tax and click on General Settings Pastel will require a password, type it in. Step Four: The Setup Tax General Settings dialogue screen appears. Click the Percentages tab. 2 P a g e
Step Five: Setting an End date for all 14% codes You will notice that the 14% in VAT code 01 is greyed out. We will not be able to use this code in future, so we will have to put an end date on the line. Type 31/03/18 in the End column. If code 04 Bad Debts is greyed out, insert the End date of 31/03/18 Do the same with all codes where the 14% are greyed out. Note: All Tax Codes that have been used for your company, will be greyed out. If the code is not greyed out, just change the percentage on the line and change the Start date to 01/04/2018. The End dates are set to 31/03/20, this is just 2 years in the future, and while we are busy with this, we might as well change the dates. Change all the End dates of the remainder of codes (the 0.00% Vat codes) to 31/12/30 Your list should now look like this: 3 P a g e
Step Six: Creating New Codes for 15% VAT Click in the first empty line, it should be line number 14, depending on your setup. Type Vat Standard 15% in the Description column. In the Tax % column, type 15 In the Start column, type the date of 01/04/18 In the End column, type: 31/12/30 The line should now look like this: In the next line, type Bad Debts 15% in the Description column. In the Tax % column, type 15 In the Start column, type the date: 01/04/18 In the End column, type: 31/12/30 Type Capital Goods 15% in the Description column. In the Tax % column, type 15 In the Start column, type 01/04/18 In the End column, type: 31/12/30 Create more lines for those codes that were greyed out on 14%. See below for the complete list that we used: It is of utmost importance that your input is perfect. When you are confident that your input is correct, click the OK button. 4 P a g e
Step Six: Changing the Vat default settings for Customers You are now ready to change the default settings for your customers, so that when you create new Customers in future, the Vat settings will automatically be on 15%. Click on Setup, Customers and click on Control. On the Setup Customer Control screen, on the Configuration tab, click the drop-down arrow in the Default Tax type for Financial Lines. Click on the Vat Standard 15% to select. Click OK. Step Seven: Changing the Vat default settings for your Suppliers Click on Setup, Suppliers and click on Control. On the Setup Supplier Control screen, on the Configuration tab, click the drop-down arrow in the Default Tax type for Financial Lines. Click to select Vat- Standard 15% Click OK. When you create accounts for new suppliers, these default settings will be used. Step Eight: Changing the Vat default settings for your Inventory (Only if you are using inventory on your system) Click on Setup, and click on Inventory On the Setup Inventory screen, click the Integration/Groups tab. We will now change these codes. On the first line, click the drop-down arrow in the Default Buy Tax and click to select Vat- Standard 15% Do the same for the Default Sell Tax on the line. Change all the codes on all the other lines on this screen. Click OK. When creating new inventory items, the 15% Vat setting will automatically be used. 5 P a g e
Step Nine: Changing the Vat code for individual Customers We have changed the default Vat settings for customers, but it will only have an effect on new customers, we will have to change all the existing customer accounts manually. Click Edit> Customers> Accounts On the first customers screen, click the Processing tab. Click the Save button. Click the drop-down arrow in the Default Tax box and select Default tax type Click the drop-down arrow in the Tax Code box and select 14 Vat Standard 15% Navigate to the Next Record navigational button and make the changes to the next customer, save the changes. Follow these steps to change the default tax for all your customers. Close the screen when all customers records were updated. Step Ten: Changing the Vat code for individual Suppliers You need to change the Vat settings of all your existing Supplier accounts. Click Edit> Suppliers> Accounts On the first suppliers screen, click the Processing tab. Click the drop-down arrow in the Default Tax box and select Default tax type Click the drop-down arrow in the Tax Code box and select 14 Vat Standard 15% Click the Save button. Navigate to all your Suppliers and make the changes. Save each record. Close the screen. 6 P a g e
Step Eleven: Changing the Vat Code for Inventory items. (Only if you are using inventory on your system.) Click on Edit > Inventory > Item File. On the Details tab, click the drop-down arrow in the Purchases box and select the new vat code. Do the same with the Sales box. Pastel will display a warning that Inclusive selling prices will be recalculate. Click OK. Click the Save button. Navigate to all Inventory Items and change the Purchases and Sales Vat codes. Step Twelve: Recording transactions in the interim period, between changing the VAT codes and the 1 st of April 2018. As mentioned earlier, it is advisable not do change the VAT codes too soon. After changing the codes, you will have to change every transaction, line for line, to code 01 if you want to use 14% VAT. For instance, in your Cashbook: When doing an Invoice before the 1 st of April, you will encounter a message from Pastel to alert you that the default Tax type may not be used: 7 P a g e
Just click OK, and remember to change the Tax code to 01 on each line to force Pastel to use 14% Vat: Finally: From the 1 st of April 2018, you will now be able to do input on Pastel without having to change the Vat codes. If the 15% Vat code does not automatically appear on a transaction, go back in these notes and determine the step or steps that you have skipped. PLEASE NOTE OUR COPYRIGHT NOTICES: The copyright of this material is the property of Cyber-Minds (Pty) Ltd. This material can only be used for training by licensed and authorized Creative Minds training centers. To copy or record this material in any way is a criminal offense. Anyone found to have transgressed our copyright will be prosecuted to the full extent of the law. 8 P a g e