Most local Councils will use the VAT126 method for reclaiming VAT on their purchases. However, some will be registered for VAT and will reclaim VAT using form VAT100. The software caters primarily for the first method, but a module is being developed to handle the VAT100 method for those Councils who need it.
For further details, follow one of the links below
It is not the purpose here to advise Councils on whether or not they should register; that is a matter for the Council to decide. However it is important to note that, if the Council makes any taxable supplies, then it must register. Unlike businesses, there is no taxable turnover limit below which the Council does not need to register.
When the software is first used, there may be VAT that was claimed in the previous financial year which was not received by the first day of the new year. This can be recorded via Create Opening VAT balance.