Changing your Lightyear settings for VAT
You are most likely aware of the new legislation which will require VAT to be charged on all private school fees relating to education and vocational training after 1 January 2025.
Your current tax rate settings within Lightyear are taking any VAT listed on invoices and grossing this up into the document Grand Total Amount. This help article will guide you through how to adjust your tax rate settings within Lightyear to start recording VAT on invoices.
Change your Lightyear tax rate settings
Navigate to your Lightyear Settings > Accountancy > Tax Rates
Click on the green pencil icon to edit your current default tax rate settings.
If you need to add any additional tax rates, you can click on the green "Add" button to create a new tax code. Please note: this must match exactly with how the tax code has been set up in WCBS.
Untick the box for "Supplier Rate Differs?" and confirm the changes
Now you will be able to set your new 20% Standard tax rate as the new "Default Tax" code using the tick box. Don't forget to save your changes after selecting your new default tax code.
For all new invoices being uploaded into Lightyear, your new default tax rate will be applied for line items with 20% VAT, and your default tax free rate will be applied for line items with 0% VAT.
For any invoices which are already in your Approvals workflow and you wish to apply your new tax settings on these, select the invoice and click on More > Reapply Map. This will refresh the invoice data and apply your new default tax settings.
If you have any questions or need any assistance, please open a live chat with our support team or email support@lightyearap.com
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