Key Takeaways
- Assign correct VAT rate to every product
- Set up rate categories (20%, 5%, 0%, exempt)
- Ensure receipts show VAT breakdown correctly
- Configure VAT summary reports
Quick Answer
EPOS automatically tracks VAT on sales, separating different VAT rates. Export VAT summaries for returns or integrate with accounting software for MTD compliance. Ensure products are set up with correct VAT rates.
VAT-registered UK businesses need accurate VAT records. EPOS automates much of this, but only if set up correctly. This guide covers how to configure VAT tracking and get the reports you need.
VAT Setup Essentials
- ✓ Assign correct VAT rate to every product
- ✓ Set up rate categories (20%, 5%, 0%, exempt)
- ✓ Ensure receipts show VAT breakdown correctly
- ✓ Configure VAT summary reports
- ✓ Connect to accounting software if using MTD
- ✓ Check VAT calculations are accurate
Common VAT Rates for UK Businesses
- Standard rate: 20% (most goods and services)
- Reduced rate: 5% (e.g., children's car seats, energy)
- Zero rate: 0% (e.g., most food, children's clothes)
- Exempt: No VAT charged (e.g., insurance, some finance)
- Outside scope: Not VAT relevant
Choose How You Buy Your EPOS System
UK businesses choose EPOS in different ways depending on budget and growth plans:
Need help choosing the right EPOS system?
VAT Reporting Methods
| Method | Effort | Accuracy | MTD Compatible |
|---|---|---|---|
| Manual from receipts | High | Error prone | No |
| EPOS export to spreadsheet | Medium | Good | With bridging software |
| EPOS to accounting software | Low | High | Usually yes |
VAT Reporting Mistakes
- ✗ Products set up with wrong VAT rate
- ✗ Not separating VAT rates in mixed businesses
- ✗ Assuming EPOS handles everything without checking setup
Frequently Asked Questions
Does EPOS automatically calculate VAT?
Yes, if products are set up with correct rates. EPOS calculates and records VAT on each transaction automatically.
How does EPOS help with Making Tax Digital?
EPOS exports to accounting software (Xero, QuickBooks, Sage) that handles MTD submissions, creating a digital trail.
Can I run VAT reports by date range?
Yes, select your VAT period dates and generate summaries of VAT collected at each rate.
What if I sell products at different VAT rates?
EPOS handles mixed baskets correctly, tracking VAT for each item separately and summarising totals.
Do I need to keep paper receipts if I use EPOS?
EPOS records are usually sufficient for HMRC. Keep digital records and backups as per normal requirements.
Already have software? Buy EPOS hardware only
Buy EPOS Hardware – Best UK Prices →Touch terminals • Printers • Scanners • Cash drawers • Scales
Ready to Choose Your EPOS System?
Related Guides
How to Track Best-Selling Items with EPOS
Most EPOS systems include sales reports showing top sellers by quantity and value. Use this data to ensure bestsellers a...
EPOS for Small Retail Shops UK
Small retail shops benefit from EPOS systems with barcode scanning, stock management, and simple reporting. Budget optio...
How to Choose the Best EPOS System in the UK
The best EPOS system depends on your business type, size, and budget. Focus on reliability, essential features for your ...