Calculation Rules to Charge VAT and CCL
Four additional calculation rules are required to charge for VAT and CCL on non-domestic rates:
• Calculate standard rate VAT
◦ Calculation Rule Type= Apply VAT to Cross Referenced Charges
◦ VAT Calculation Type = Standard Rate
◦ Specify the De Minimis Characteristic Type
◦ Specify Declaration Percentage Threshold Bill Factor
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Note that the calculation rule overrides description on bill
◦ Cross-reference the calculation line category for energy related charges that are subject to VAT
• Calculate reduced rate VAT
◦ Calculation Rule Type = Apply VAT to Cross Referenced Charges
◦ VAT Calculation Type = Reduced Rate
◦ Specify the De Minimis Characteristic Type
◦ Specify Declaration Percentage Threshold Bill Factor
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Note that the calculation rule overrides description on bill
◦ Cross-reference the calculation line category for energy related charges that are subject to VAT
• Calculate CCL and CCL Relief
◦ Calculation Rule Type = Calculate Climate Change Levy and Relief Charges
◦ UOM/TOU/SQI = the identifier of the service quantity that the prices applies to
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Note that the calculation rule overrides description on bill
• VAT on CCL
◦ Calculation Rule Type = Apply To
◦ Value type = Percentage
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Cross-reference the calculation line category for the total CCL and CCL Relief related charges
Setting up the calculation rules as above produces separate lines for VAT on energy related charges and on CCL (i.e., lines will be created for standard rate VAT on energy related charges, reduced rate VAT on energy related charges, and standard rate VAT on CCL charges).
You can set up rates to calculate standard rate VAT on energy related charges and CCL together as follows:
• Calculate standard rate VAT charges
◦ Calculation Rule Type = Apply VAT to Cross Referenced Charges
◦ FCPO = Yes
◦ VAT Calculation Type = Standard Rate
◦ Specify the De Minimis Characteristic Type
◦ Specify Declaration Percentage Threshold Bill Factor
◦ Value Source = Value
◦ Value = 100
◦ Note that the calculation rule overrides description on bill
◦ Cross-reference the calculation line category for energy related charges that are subject to VAT
• Calculate CCL and CCL Relief
◦ Calculation Rule Type = Calculate Climate Change Levy and Relief Charges
◦ UOM/TOU/SQI = the identifier of the service quantity that the prices applies to
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Note that the calculation rule overrides description on bill
• Calculate standard rate VAT
◦ Calculation Rule Type = Apply To
◦ Value type = Percentage
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Cross-reference the calculation line category for the total CCL and CCL Relief related charges
• Calculate reduced rate VAT:
◦ Calculation Rule Type = Apply VAT to Cross Referenced Charges
◦ VAT Calculation Type = Reduced Rate
◦ Specify the De Minimis Characteristic Type
◦ Specify Declaration Percentage Threshold Bill Factor
◦ Specify Value Source. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Note that the calculation rule overrides description on bill
◦ Cross-reference the calculation line category for energy related charges that are subject to VAT