Summary


VAT eligible components have a VAT switch to turn on their VAT calculation. VAT payments to and from HMRC are handled automatically and are timed to match the plan's financial year end.


VAT in Settings


There are two default VAT rates which are set in Settings. By default these are 20% and 5% but you can edit these as you wish.




VAT in Components


Each component eligible for VAT (Income, Operational Cost, Cost of Sales, Inventory, Asset) has a switch at the bottom of their component form to turn on VAT. You can set VAT to be automatically turned on in Settings (this will affect new components, but not existing ones). 


If you do not want to apply VAT to a component, simply turn the VAT toggle to the 'off' position in that component - VAT will no longer be applied to that component.


The VAT option in components allows you to select which of the two VAT rates set in Settings to apply to the component. You can also select 'Custom' if you need to enter a VAT rate different to either VAT rate in Settings. 


VAT in Operational Cost


VAT in Income



VAT 'On top of' and VAT 'included in'


VAT can either be set up as 'on top of' the values entered in the component, or 'included in' them. 


For example, if I had an income component generating £100, then added VAT 'on top of' this - I would see £100 income and £20 VAT in my reports. 


If I instead add VAT 'included in' this income, I am assuming that the figure I enter in income of £100 already includes VAT. In this case, I will see £83.33 income and £16.67 VAT in my reports.


Payments to/from HMRC


Brixx handles VAT payments to HMRC, so any payment or refund will happen automatically every three months. The timing of this payment is based on the plan's financial year end. Financial year end is set in General Settings and defaults to the end month of the plan.