VAT modelling changes
Posted in Announcement, News
As part of ongoing system improvements and developments we’ve been looking at how Rx-info models VAT percentages from the JAC/CMM system in order to make it as accurate as possible.
Previously 5% VAT rated items (e.g. NRT) were going unidentified, but we now account for the actual VAT rate specified for each item. This means that, after the data has been refreshed, there are a number of Exend+ Better Value Procurement (BVP) audits previously calculated against an incorrect value to have been corrected, recalculated and audit reason removed.
The result is a minimal impact on the majority of trusts with around 3-4 new audits produced each month. However, it has also highlighted that a number of Trusts have VAT rates assigned to drug files in their JAC/CMM which may not be the correct VAT rate with an incorrect purchase price to compensate i.e. 0% assigned as a VAT rate on a £1.20 purchase rather than a 20% VAT rate and £1 purchase value.
We would suggest that any new BVP audits be investigated in JAC/CMM for the correct VAT rate.
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