VAT expenses
At this level you can specify the VAT expenses for the combination of country, property type and non-recoverable operating expenses cash flow line.
The configured VAT expenses are displayed in the Income & Expenditure screen for each operating expense cash flow line. Based on whether the lessee is subject to VAT and the VAT expense type, the irrecoverable VAT is automatically calculated using the following logic:
VAT Liable | VAT Expense | OpEx | Calculated OpEx | Irrecoverable VAT | Reasoning |
|---|---|---|---|---|---|
Yes | Exempt | 10,000 | 10,000 | 0 | Exempt from VAT, so no VAT handling. |
Yes | Include VAT | 10,000 | 9,090 | 0 | VAT part can be recovered, so it is deducted from the entered OpEx. |
Yes | Exclude VAT | 10,000 | 10,000 | 0 | VAT can be recovered, so no irrecoverable VAT. |
No | Exempt | 10,000 | 10,000 | — | Exempt from VAT, so no VAT handling. |
No | Include VAT | 10,000 | 10,000 | — | VAT cannot be recovered but is already included in the entered OpEx. |
No | Exclude VAT | 10,000 | 10,000 | 1,000 | VAT cannot be recovered, resulting in irrecoverable VAT. |
 | For ease of use, use the filter option at the top to filter on the values within the first two columns. |
Field | Description |
|---|---|
VAT handling | Select a value from the list to indicate how VAT should be handled: • Exempt from VAT • Exclude VAT • Include VAT |
VAT scheme | Select a VAT scheme - only available if you select to include or exclude VAT. |