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Sage Pastel Partner & Xpress VAT Adjustment Process

I am not in any way affiliated with Sage Pastel.

This guide is pulled together from multiple online sources, use at your own risk. I can assist remotely with upgrading your software but I’m not an expert in the workings of Pastel. If you want an expert’s help, look at the end of the post.

VAT Update Patch for users of Sage Pastel v14, v17 and v18

If you are using Sage Pastel v14, v17 or v18, you can download the VAT Change Build update from the following location

http://pastelupdate.sagesouthafrica.co.za

If you are using a version of Sage Pastel prior to V14, you will need to follow this step-by-step procedure:

These steps can be done anytime between now and the end of the month

  • Go to Setup>Tax>General Settings>Percentages
  • In Row number 1, change the description from “Vat – Standard rated” to “Vat – Standard rated 14%” and change the date in the End column to 31/03/2018.
  • In Row number 11, insert the description “Vat – Standard rated 15%”, insert 15 in the Tax % column, change the Start date to 01/04/2018 and the End date to 31/12/2050.
  • In Row number 12, insert the description “14% Credit Note Mar 18”, insert 14 in the Tax % column, change the Start date to 01/04/2018 and the End date to 28/02/2019. This VAT code is to be used where credit notes need to be passed after 31 March 2018, relating to invoices processed before 1 April 2018.

The following changes can only be done after the last transaction has been processed on 31 March 2018, but before the first transaction on 1 April 2018

    • For each customer account, go to the Processing tab and, in the Tax section, change the default tax code from 01 to 11. If there is no default tax type set up, you can ignore this step.
    • For each supplier account, go to the Processing tab and, in the Tax section, change the default tax code from 01 to 11. If there is no default tax type set up, you can ignore this step.
    • Go to Setup…Customers…Control and, in the Configuration tab, change the Default Tax Type for Financial Lines from 01 to 11.
    • Go to Setup…Suppliers…Control and, in the Configuration tab, change the Default Tax Type for Financial Lines from 01 to 11.
    • For each inventory item, go to the Details tab and, under the Allow Tax section, change the VAT code from 01 to 11 for both Purchases and Sales.
    • Go to Setup…Inventory and, under the Integration/Groups tab, change the Default Buy Tax and the Default Sell Tax from 01 to 11.
  • If you have too many customer/supplier/inventory codes to make the above adjustments manually, speak to the experts below.
  • If you have any outstanding Sales Orders or Purchase Orders on 1 April 2018 with a VAT code of 01 on the line items, please note that the VAT code will need to be manually adjusted to 11 for each line item once the Order has been converted to a Tax Invoice / GRN / Supplier Invoice.
  • If you are using VAT inclusive selling prices, please note that your VAT exclusive selling price will be reduced on 1 April unless you increase the VAT inclusive price to accommodate the VAT rate increase.
  • If you have Recurring Invoice batches, you will need to change the VAT code, for each line item on each invoice, from 01 to 11, before your April 2018 invoices are created.
  • If you have invoices on hold carried over from March 2018, you will need to change the VAT code, for each line item on each invoice, from 01 to 11, before the invoices are finalised.

More Information

Troubleshooting

See https://handshake.co.za/2018/sage-pastel-accounting-vat-update-fixes/

Sage Pastel Experts

These guys will be flat out over this period, so get in early if you can, they work on a first-come-first-served basis.

Neither Tony or Neville work for Sage Pastel, they are private consultants.

22 thoughts on “Sage Pastel Partner & Xpress VAT Adjustment Process”

  1. Good day Pastel team. I have been holding on now for a combined time of 2h00. I’ve tried following your online tutorial with regard to the 15% VAT increase effective 01 April 2018 to no avail.
    I keep on getting an error message saying “the tax type that you have selected (vat standard rated) has an expiry date set to 31/12/50 and may not be used.The tax type for this line will be set to 00 – No tax.
    Either choose a different tax type or set a new expiry date for Vat – Standard Rated (which I’ve done and it still gives the same message).
    We are currently using Pastel Version V9.

  2. I must be honest but I am very disappointed at the service received from Pastel for the implementation of the new VAT Rules.

    I have emailed Pastel, and not once received a notification etc from Pastel. According to the sales staff, we were supposed to receive an email – which I never did. I did however receive the invoice, and needed to make payment in order to continue using Pastel. So why did I never receive the notification?
    My contact details have not changed in at lease 4 years.

  3. Hi Emile
    I have absolutely no affiliation with Sage Pastel
    Are you really surprised that their phones are busy?! Imagine the number of people that have left this to the last minute and are now in a flat spin.
    You are on a rather ancient version of Pastel which makes things way more complicated. I don’t know of anyone who has tested that far back. If you are truly stuck, you can try to call Tony or Neville but I suspect you’ll struggle to get hold of them too.

  4. I have Pastel Xpress Version 11 Build 11.3.1 and I cannot seem to change the VAT from 14%. Please help.

  5. Thank You Grant.

    The Update went through smoothly after I had to do the update the new build and then the vat upload from pastel.

  6. I need to know when doing credit notes after the 1st April 18 for invoices done before 1st the Vat needs to be 14% but do we use code 01standard rate or code 11 which is the temporary vat at 14%?

  7. Hi there!
    I get an error message when installing the patch for V14.
    It is Error 1328 – Error applying patch to file…….can no longer be modified by this patch.

    Does this mean I don’t have to install the update?

    Thanks so much!!

  8. Oh sorry, I see it is under the More Information, sorry about that. So far this process is looking good, even though the Pastel Callcenter told me that it was not possible to change V11 and that I would have to upgrade!

  9. Bernadette Stevens

    i am using Pastel xpress v12. I have followed online guides and videos to a T and have made all the VAT adjustments manually. When I attempt to process a customer or supplier transaction I get the following error:
    The tax type you have selected ( Vat Standard rate) has an expiry date of 31/01/50 and is not valid. The tax type for this line will be set to 00.
    Either choose a different tax type or set a new expiry date.

    Honestly!! No help from Pastel at all.!!! I tried to enter the same in period 03 and it appears to work – just a problem with period 02.(april)
    Tried setting different end dates – no luck.
    Please help

  10. Bernadette Stevens

    Thank you Grant . I tried all that and although some of the settings were incorrect and I adjusted them (thank you) it did not work.

  11. ELmarie Lourens

    Hi Grant
    I have changed my tax percentages but when updating my cash book it default back to 14%
    Can you help please?

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