I have been using solar accounts for a while and love it. I was non VAT registered originally but went VAT registered on 1st Aug.

I haven't set up VAT in solar accounts yet but am about to do so.

I am first catching up with all entries before 1st Aug.

Is there any gotchas I should know about?

I have already sent one invoice by accident after 1st Aug without VAT, can I go back and correct (convert to a VAT inclusive amount as they already paid!)?

There is always the possiblity that I might have to go back to correct something before 1st Aug too, will that be a problem?

Hi John,

Yes that is fine. The simplest approach is to enter all your transactions up to 31 July, then click menu Setup > Contact Details & VAT > Registered for VAT, then enter all the transactions after 1 August. To correct the existing August invoice, open the invoice window and change the VAT Treatment field to 'Sale of Goods or Services to UK Customer' and change the VAT percentage to 20%.

In future you should not have any problem editing transactions dated before 1 August - just ensure that the VAT Treatment remains 'Out of Scope'.

Regards,

Thanks for that info.

I forgot to mention also that I need to reclaim all VAT on entries in the solar accounts back on my first return also. (I was behind and caught up with missing years when I first bought SA).

Is there an easy way to find out? I have spent a lot on equipment etc since using solar accounts so it will add up to a lot. Or do I have to rego through everything. Also a lot of that will be at 17.5%.

Is this going to complicate my returns?

Hi John,

Unfortunately Solar Accounts cannot keep track of the VAT you paid to suppliers before you are VAT-registered. You will need to calculate this amount yourself then manually increase the Box 4 and Box 7 figures on your first VAT return. Also, on the date you become VAT-registered you should record a General Transaction from the 'Uncategorised Income' account to the 'VAT Liability' account for the amount of the Box 4 increase.

Regards,

Hi John

I had a similar problem, what I did was opened a new business file in solar called Vat Reclaim then entered each invoice that I identified with either the 17.5% or 20%, and dated everything the day before I became registered.

This way solar gives you the correct figs to include with you next return. If you check with the Vat Office they will tell you what date you can go back to, also dont forget to claim the vat back on any stock holding you had on the 1st Aug

Hope this helps