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LJG5
February 17, 2019
Solved

moving from FRS VAT to STANDARD VAT

  • February 17, 2019
  • 1 reply
  • 0 views

What is the process in QBOA to move from one vat scheme to another - my client will be moving from Flat rate scheme to the standard Vat scheme?  Is it just a case of editing and changing this in the settings option AFTER the end of the last VAT period, before the change? 

Best answer by JessT

Hello again, LJG5!

 

Since you'll be changing the scheme after filing, you won't have to do anything. This is what we usually suggest when changing VAT schemes to  make sure the VAT is correct when working with the new scheme.

 

On the other hand, your open purchases with exempt or zero codes will not be affected.

 

Feel free to post again if you need anything else. We're just around to help.

1 reply

JessT
JessT
February 18, 2019

Hi LJG5,

 

You're right. You can just edit the settings.

 

If the effective date of your change is under the period when you already filed your taxes, QBO will create amendments. If not, you won't need to do anything. QuickBooks will recalculate the the VAT and apply the new scheme.

 

Please stay in touch if you have other questions.

L
LJG5Author
February 24, 2019

Hi Jess, thanks for responding.

 

I will be planning to change EDIT the SETTINGS and change to the Std Vat scheme immediately after the final FRS VAT return has been filed (not before).

 

However your post indicates if there are any current transactions open (both purchases and sales) dated in that live month (remember VAT returns are often done 3-4 weeks after the period has ended) then QB will automatically adjust these to Standard VAT?  Particularly on purchases QB can't just assume there is Standard VAT applicable on these costs - when they might be zero or exempt type purchases?

 

Any more advice or comments would be helpful.

Thanks

JessT
JessTAnswer
February 24, 2019

Hello again, LJG5!

 

Since you'll be changing the scheme after filing, you won't have to do anything. This is what we usually suggest when changing VAT schemes to  make sure the VAT is correct when working with the new scheme.

 

On the other hand, your open purchases with exempt or zero codes will not be affected.

 

Feel free to post again if you need anything else. We're just around to help.

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