Vat registration & older invoices

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

Hi,

No, nothing to do with vat currently in Quickbooks.

Thx

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!

Hi,

thanks for your reply.

So to confirm invoices that I have now in Quickbooks that are either due or will be due (recurring invoices), paid or not paid before I am VAT registered (have a date from HMRC) they will not be expected to pay VAT (issued with VAT) but ones I make once enter VAT number and start data Quickbooks works it all out?

Sorry if repeat, just want to make sure 100% current invoices that exist before my official VAT reg date won't be expecting me to collect VAT for.

thanks

Yes, existing invoices aren't taxable since you created them before the registration, accounts-2upc-co.

However, if there are changes and if you're required to make existing transactions taxable, you may need to edit the item and make it taxable.

Here's how:

1. Go to Settings ⚙, then select Products and Services.
2. Find the non-stock or service item you want to change.
3. Click Edit in the Action column.
4. Mark the Inclusive of VAT check box, if applicable.
5. Select the VAT ▼ drop-down and choose the tax rate to be used for the item. If you don’t see this dropdown, set up VAT in QuickBooks.
6. When you're done, click Save and Close.
7. After that, open the invoice and re-select the item to apply the changes.

You may also add tax categories to anything you sell, then double-check the customer's information if they're required to pay VAT. I'm adding these articles to set them up and how to pay tax returns in QuickBooks.

• Learn how to add a VAT category to your products and services in QuickBooks Online.
• Add and manage customers in QuickBooks Online.
• Record a VAT payment or refund in QuickBooks Online.

Get back to me if there are other things you need with by commenting below. I want to make sure your transactions are recorded correctly before and after the VAT registration. Take care and have a great weekend ahead!