What's the best way to record VAT before VAT Registration?

An established business on VT has recently become VAT registered.   I can't find any reference to this scenario in VT Help.   Apart from posting a journal entry, is there a better way to record on the first vat return, the vat reclaimed on purchases/services in the prior 6 months?

Thanks.

Comments
mr. mischief's picture

Yes    1 thanks

mr. mischief | | Permalink

This is exactly the sort of situation where VT gives Sage a good hiding.  Suppose one of the invoices was for £100 of accountancy, plus £20 VAT.

At the moment this one is showing as £120 accountancy.  You now change the company properties to "VAT registered".  Then edit the purchase invoice to "within the scope of VAT" and choose 20% as the VAT option.

Now the invoice is £100 accountancy, £20 VAT.

ONE CAVEAT

If a purchase invoice is dated before the last year-end, and you've issued year-end accounts, I recommend just doing this by journal.  This will preserve the link from source transactions to final accounts.  Note that in Sage you'd have to do the lot by journal.

Add comment
Log in or register to post comments
Group: VT Software discussion group
A place for sharing tips and ideas on VT Transactions and VT Accounts.