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A
accounts-2upc-co
February 9, 2023
Question

Vat registration & older invoices

  • February 9, 2023
  • 1 reply
  • 0 views

Hi,

I am going VAT reg in April, I have recurring invoices and one off invoices and invoices not yet paid issued before vat registration plus unpaid invoices will exist without vat.

How do I avoid vat being calculated on these invoices on cross over to being vat registered? Will I end up paying vat on invoices that were issued without vat. I am cash accounting for self assesment and planned to be on vat.

 

Thanks

1 reply

G
GeorgiaC
February 9, 2023

Hi accounts-2upc-co, thanks for your post - do the pre-VAT registration transactions have a QuickBooks VAT code applied? 🧐

A
accounts-2upc-coAuthor
February 10, 2023

Hi,

No, nothing to do with vat currently in Quickbooks.

 

Thx

S
SirielJeaB
February 10, 2023

I'm delighted to see you back here in the Community, @accounts-2upc-co. I appreciate you for providing us further information about your concern.

 

You will not be charged VAT on invoices issued without VAT. Please be aware that only paid invoices will be taxed. Furthermore, if your customer fails to pay the invoices, you can record them as a bad debt expense.

 

I also recommend that you seek assistance from your accountant or tax experts to properly manage your sales tax records. They can check your transactions to ensure that they are accurate.

 

You may want to know how to set up and use the VAT feature in QuickBooks Online. You can check out this article: Set up and use the VAT feature in QuickBooks Online. QuickBooks can automatically calculate VAT on your invoices and receipts for easy and correct filings.

 

Drop by again if you have further questions about managing your Value-Added Tax or invoices. The Community is looking forward to assisting you. Have a nice day!

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