I've read a couple of previously posted topics on this subject stretching
back years but haven't found an explanation of exactly how to successfully
manage the UK's VAT Flat Rate Scheme (FRS) from within gnucash. Here we are
in 2019, can anyone share their method?

In summary when in the VAT Flat Rate Scheme one adds 20% to sales to create
an invoice. Then one calculates 15.5% of sales which is paid to the
government. The difference between the 20% invoiced and the 15.5% paid out
is profit for the business ie

Sales: £1000
VAT added to sales invoice @ 20% = £200
Invoiced amount: £1200
VAT @ 15.5% owed to government = £155
Profit for business = 200-155 = £45

Thanks for any help, I'm really looking forward to a neat solution!




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