General VAT settings

General VAT settings.

Here is a summary of the various VAT settings.

Are you registered for VAT?
Choose 'Yes' to enable VAT.
Reporting basis:
Choose between ‘Accrual’ and ‘Cash’ for VAT calculations. If you are using the VAT ‘Flat Rate Scheme’ you must choose accrual reporting.
Default sales figures:
Do you want to enter transactions with VAT already added (VAT inclusive)? Or before VAT is added (VAT exclusive)?
Default VAT account for sales:
which account should VAT amounts be posted to?
Default VAT account for purchases:
which account should VAT amounts be posted to?
You should normally leave these accounts as the defaults.
Allow users to:
choose whether or not VAT amounts can be edited and whether or not the ‘VAT inclusive/exclusive’ toggle can be changed for each transaction.
You may wish to seek guidance from a suitably qualified accountant or bookkeeper on the best VAT schemes and settings for your business.

How did we do?

Making Tax Digital (MTD) for VAT introduction

VAT details

Related Articles

Powered by HelpDocs (opens in a new tab)