VAT in Spektrix (UK and Ireland)

Dave McNamara
Dave McNamara
  • Updated

In this article, we’ll explain how Spektrix calculates and handles VAT (also known as a Tax Code in Spektrix). You’ll find information on updating Tax Codes for Events, Memberships, Merchandise, Delivery and Ticket Commission. You’ll also find information on how to backdate tax on previously sold items.

 

What is VAT?

VAT (also known as Value Added Tax) is a tax added to items and services sold by VAT registered organisations. To learn more about VAT, read How VAT works.

 

How does Spektrix calculate VAT?

Spektrix calculates the VAT by dividing the gross amount of the item by 1.20 (for 20% VAT). Subtract the gross amount which will equal the VAT amount.

For example, if a ticket costs £20, 20 divided by 1.20 gives you a net figure of £16.66. You then subtract the gross value (£20) of the ticket which leaves a VAT amount of £3.34.

TIP: VAT is charged per item and not on the total value of the Basket/Cart.

 

How does Spektrix handle VAT?

Whenever you create an Event, Merchandise or Membership item, or set a Delivery or Transaction Commission in Spektrix, you’ll set a Tax Code against each item. The Tax Code indicates the amount of VAT to charge for that item.

TIP: The Tax Code you use will vary based on what you sell and your organisation’s status.

For example, a non-profit organisation may not be liable to pay VAT on Tickets sold for their own Events. Whereas VAT on Memberships may apply at the standard rate.

When an item is sold, the VAT rate for that item is recorded.. This means that you can report on the VAT rate for that item at the time of the sale, even if the VAT rate changes in the future.

If the VAT rate changes, Spektrix will update the VAT rate for each Tax Code and record the new rate on any future sales. Previous sales will not be affected.

 

What Tax Codes can I use in Spektrix?

You can use the following Tax Codes against Events, Merchandise, Memberships, Delivery and Transaction Commission.

TIP: Ticket Commissions and Agent Commissions inherit the VAT Rate against the Event and can’t be set separately.

  • E - Exempt (not applicable)
  • N - Not Registered (not applicable)
  • S - Standard Rate (20%)
  • R - Reduced Rate (5%)
  • O - Outside Scope (not applicable)
  • Z - Zero Rate (0%)
  • T - Temporary Rate (12.5% between 1st October and 31st March 2022, 5% between 15th July 2020 and 30th September 2021)

It isn’t possible to add new Tax Codes to the system, you should use the Tax Code applicable for the item you’re selling and your organisation’s status. You can find more information on VAT rates on goods and services on the HM Revenue & Customs (HMRC) website.

TIP: Our Support Team can’t advise you which Tax Code to use. If you’re unsure, speak to an administrator in your organisation or contact HM Revenue & Customs (HMRC).

 

How to change the VAT Rate

If you edit the VAT rate, this will affect  all future sales. Previous sales will not be affected.

If you want to backdate VAT on previous sales, go to Backdating VAT for previously sold items.

To edit the VAT rate for future sales, you’ll need to access the Admin menu.

TIP: To access the Admin menu, you’ll need the Sales Administrator or General Administrator Role on your User Account. If you don’t have this, speak to the Administrator in your organisation.

To access the Admin menu, follow these steps:

  1. Click the Control Panel button (in the bottom left corner of Spektrix):

     

  2. Click Admin:

     

Once you’ve clicked Admin, go to the relevant section below for the item you want to update.

 

Single Event Instance

To update the Tax Code on a single Event Instance, follow these steps:

    1. Search for the Event you want to update
    2. In the Instances tab, select the Instance
    3. In the Basic details tab, scroll to the bottom of the screen and click Edit:

       

    4. Change the Tax Code using the dropdown box:

       

    5. Scroll to the bottom of the screen and click Save:

 

Multiple Event Instances

You can change the Tax Code on multiple Instances at once. To do this you’ll use the Bulk Instance Update Tool

You’ll find this by clicking the Update multiple instance button at the bottom of the Events Search screen:

To learn how to update multiple Instances at the same time, read Using the Bulk Instance Update Tool.

 

Memberships

TIP: VAT is only applied to the benefit amount of a Membership and not any Donation amount (if set).

To update the Tax Code on Memberships, follow these steps:

  1. Click Subscriptions > Memberships:

     

  2. Select the Membership you want to edit:

     

  3. In the Basic details tab, scroll to the bottom of the screen and click Edit:

     

  4. Change the Tax Code using the dropdown box. Click Save:

     

 

Merchandise

To update the Tax Code on Merchandise, follow these steps:

  1. Click Other > Merchandise:

     

  2. Select the Merchandise you want to edit:

     

  3. In the Basic details tab, click Edit:

     

  4. Change the Tax Code using the dropdown box. Click Save:

     

 

Delivery Commissions

To update the Tax Code on Delivery Commissions, follow these steps:

  1. Click Pricing > Other Commissions:

     

  2. Scroll down to the Delivery Commissions section.
  3. Click Edit next to the Delivery Method you want to apply Commission to:

     

  4. Choose your Tax Code from the dropdown list and click Save:

     

 

Transaction Commissions

To update the Tax Code on Transaction Commissions, follow these steps:

  1. Click Pricing > Other Commissions:

     

  2. Scroll down to the Transaction Commissions section.
  3. Click Edit:

     

  4. Choose your Tax Code from the dropdown list and click Save:

     

REMINDER: Ticket Commissions and Agent Commissions inherit the VAT Rate set against the Event and can’t be set separately.

 

Backdating VAT for previously sold items

When you edit the Tax Code on an Event, Merchandise Item or Subscription, this takes effect from the moment you save the changes. This will only apply to future sales.

If you want to backdate the VAT on previously sold items, our Support Team can action this for you. Before you contact Support, you’ll need to edit the Tax Code set against the item. 

Read How to change the VAT Rate for more information.

Once you’ve changed the VAT Rate, contact Support who will backdate the VAT on previous sales for that item.

TIP: If you backdate VAT on previously sold items, you’ll need to reissue any Invoices and run your Reports to reflect the updated VAT Rates.

This article should give you the information you need to understand VAT Rates in Spektrix. To learn more, go to the Manage Payments section of the Support Centre.