Rate Components to Charge VAT and CCL
Four additional rate components are required to charge for VAT and CCL on non-domestic rates:
• Calculate standard rate VAT
◦ RC Type= Calculation Algorithm
◦ Value type = Percentage. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for standard rate VAT.
◦ Specify the UOM/TOU/SQI of the service quantity that holds the total consumption
◦ Turn on Derive SQ
◦ Calculation algorithm = the algorithm you set up to calculate VAT at the standard rate
◦ Cross-reference all rate components that contribute to the total bill amount for energy related charges
◦ Note that the algorithm overrides description on bill
• Calculate reduced rate VAT
◦ RC Type = Calculation Algorithm
◦ Value type = Percentage. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for reduced rate VAT.
◦ Specify the UOM/TOU/SQI of the service quantity that holds the total consumption.
◦ Turn on Derive SQ
◦ Calculation algorithm = the algorithm you set up to calculate VAT at the reduced rate
◦ Cross-reference all rate components that contribute to the total bill amount for energy related charges
◦ Note that the algorithm overrides description on bill
• Calculate CCL and CCL Relief
◦ RC Type = Calculation Algorithm
◦ Value type = Unit Rate. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for CCL per unit price.
◦ UOM/TOU/SQI = the identifier of the service quantity containing the total units of energy consumed
◦ Calculation algorithm = the algorithm you set up to calculate CCL
◦ Note that the algorithm overrides description on bill
• VAT on CCL
◦ RC Type = Apply-to
◦ Value type = Percentage. 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 rate component that calculates CCL and CCL Relief
Setting up the rate components 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
◦ RC Type = Calculation Algorithm
◦ Turn on For Calculation Purposes Only (Result Type = Charge )
◦ Value type = Percentage. Define a value source of Value and a value of 100.
◦ Specify the UOM/TOU/SQI of the service quantity that holds the total consumption.
◦ Turn on Derive SQ
◦ Calculation algorithm = the algorithm you set up to calculate VAT at the standard rate
◦ Cross-reference all rate components that contribute to the total bill amount for energy related charges.
• Calculate CCL and CCL Relief
◦ RC Type = Calculation Algorithm
◦ Value type = Unit Rate. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for CCL per unit price.
◦ UOM/TOU/SQI = the identifier of the service quantity containing the total units of energy consumed
◦ Calculation algorithm = the algorithm you set up to calculate CCL
◦ Note that the algorithm overrides description on bill.
• Calculate standard rate VAT
◦ RC Type = Apply-to
◦ Value type = Percentage. 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 rate component that calculates standard rate VAT charges and the rate component that calculates CCL and CCL Relief
• Calculate reduced rate VAT:
◦ RC Type = Calculation Algorithm
◦ Value type = Percentage. It is recommended that you use a value source of Bill Factor and reference the bill factor you set up for reduced rate VAT.
◦ Specify the UOM/TOU/SQI of the service quantity that holds the total consumption.
◦ Turn on Derive SQ
◦ Calculation algorithm = the algorithm you set up to calculate VAT at the reduced rate
◦ Cross-reference all rate components that contribute to the total bill amount for energy related charges.
◦ Note that the algorithm overrides description on bill.