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Level 1

Vat registration & older invoices


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.



QuickBooks Team

Vat registration & older invoices

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

Level 1

Vat registration & older invoices


No, nothing to do with vat currently in Quickbooks.



QuickBooks Team

Vat registration & older invoices

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!

Level 1

Vat registration & older invoices


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.




Vat registration & older invoices

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.


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!

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