How To: Setup and use Vat Relief Qualified

Table Of Contents

Introduction
All Three Settings Are Required
Single-Brand Businesses
Copying or Moving Sales Orders
EPOS Limitation

Introduction

Some customers may qualify for VAT relief when purchasing specific products due to a medical condition or disability.
For example:
  • A customer with chronic asthma may qualify for VAT relief when purchasing a nebuliser.
  • The same customer would not automatically qualify for VAT relief on a wheelchair unless they also met the eligibility requirements for that product.
In Khaos Control, VAT Relief Qualified (VRQ) allows eligible products to be sold without VAT when the correct conditions are met.
For VAT relief to be applied automatically on a sales order, VRQ must be enabled against:
  • The stock item.
  • The customer.
  • The sales order brand.
All three conditions must be met for VAT relief to be applied.

Enable VRQ for a Stock Item

  1. Open a Stock record.
  2. Select the [ Stock | Detail | Options ] tab.
  3. Press Alt+E or click Edit.
  4. Tick VAT Relief Qualified.
  5. Press Ctrl+S or click Save.
Tip: You can update multiple stock items at once using the Block Change functionality. See How To: Block Update Selected Stock Items.

Enable VRQ for a Customer

  1. Open the required Customer record.
  2. Load the customer you want to update.
  3. Press Alt+E or click Edit.
  4. In the Options area of the [ Customer | General ] tab, tick VAT Relief Qualified.
  5. Press Ctrl+S or click Save.

Enable VRQ for a Brand

  1. Open System Data.
  2. Double-click [ Sales Order Processing | Branding ].
  3. Press Alt+E or click Edit.
  4. Tick Tax Relief.
  5. Press Ctrl+S or click Save.
Note: If you are creating a new brand, see How To: Setup Branding.

Using VRQ on a Sales Order

Once VRQ has been enabled for the stock item, customer and brand, VAT relief will be applied automatically when qualifying products are added to a sales order.
  1. Create a new sales order. See How To: Create a New Sales Order.
  2. Open the Additional tab.
  3. Select the appropriate brand for the order.
  4. Add qualifying stock items to the sales order.
  5. Khaos Control will automatically apply VAT relief to eligible items.
  6. Press Ctrl+S or click Save when you have finished editing the order.

Important Notes

All Three Settings Are Required

VAT relief is only applied when VRQ is enabled against:
  • The stock item.
  • The customer.
  • The brand.
If any one of these settings is missing, the item will remain taxable.

Single-Brand Businesses

If the Tax Relief option is not enabled on the brand, Khaos Control will not display a warning or prompt.
Instead, the VAT rate on the sales order line will remain as defined on the stock item and VAT relief will not be applied.
Even if your business only trades under a single brand, you must:
  1. Create the brand in [ Sales Order Processing | Branding ].
  2. Enable the Tax Relief option.

Copying or Moving Sales Orders

When copying or moving a sales order to another customer, Khaos Control displays a prompt asking whether the original VAT relief settings should be retained.
Options available are:
  • Yes (default) – Applies VAT relief to eligible stock items on the new order.
  • No – Retains the VAT rate currently assigned to the sales order lines.

EPOS Limitation

VAT Relief Qualified (VRQ) is not supported within Electronic Point of Sale (EPOS).

Additional Information

VAT relief can help organisations selling qualifying medical or disability-related products ensure eligible customers are charged correctly.
To ensure VAT relief is applied successfully:
  • Enable VRQ on qualifying stock items.
  • Enable VRQ on eligible customer accounts.
  • Enable Tax Relief on the brand used by the sales order.
  • Ensure the correct brand is selected on every qualifying sales order.
Following these steps will allow Khaos Control to automatically remove VAT from eligible products when processing sales orders.

See Also


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