Change the VAT rate of a bill belongs to a submitted VAT return

Hello DileepaNirmal, thanks for posting on the Community page, it will automatically create an exception to reduce the VAT for that box. You don’t need to do anything manually. The system will do it all for you.

Hi @DileepaNirmal

The problem with edits to old invoices (causing VAT exceptions) or amending VAT returns is the lack of note to explain what happened - if you're asked about it in 4yrs time, could you explain what/why?

As long as you aren't talking big amounts (>£100s of VAT) I think the neatest way to do this would be to leave the original QB transaction alone & enter a supplier credit which exactly cancels it (with incorrect VAT treatment), then enter the bill (with correct VAT treatment).

Enter the credit & new bill on day 1 of the current VAT quarter - use memo field to add a note to explain the date mismatch & what you have done.

Also - be careful using NoVAT code.  This skips the VAT Return completely (no posting to box 6 or 7).  If the transaction should be on the VAT Return, use Z=0% or Exempt instead.

Hope this helps.