This setting is required for all organisations which report VAT, GST or Sales/Purchases Tax to a local tax authority.
AccountsPortal allows you to define the name of your Sales and Purchases Tax in the Financial Settings of your organisation. For the sake of simplicity, the help document refers to the tax as VAT. The application will correctly reflect the name you define though which might be VAT, GST, Sales Tax or anything of your choosing.
PLEASE READ CAREFULLY:
Changes made to this part of the application can significantly affect your data. If you are unsure, speak to your Accountant first.
If you know your Tax Status for VAT is going to change on a certain date, then you should create the new status well in advance of that date, and prior to entering new transactions.
If the Organisation is already tax registered, and you are changing to a different VAT scheme or Accounting Basis, we advise where possible, that you arrange with the tax authorities for the new status to be valid from the beginning of a new period/month. This will greatly reduce the complexity of checking the values of the VAT Report before and after the change of status.
If the tax status for the Organisation has changed, then a New Tax Status should be entered and saved, rather than editing the existing status.
If a new Tax Status is created, any existing transactions with a transaction date on or after the 'Valid From Date' will need to be opened and resaved to pick up the new Tax Status. For invoices and credit notes, this requires opening and resaving at least one line item in each transaction. This step is extremely important as the Tax Status is set in the transaction and referenced during creation of the VAT Report. Alternatively, you can void/delete these existing transactions and re-enter them. Note that extra steps are required for invoices/credit notes that have already been paid:
Also note that if you have already saved a VAT Report covering the validity period of the new Tax Status, then you will need to delete this report before updating the transactions.
To add a new Tax Status, or edit an existing status, perform the following steps:
To delete an existing Tax status, perform the following steps:
VERY IMPORTANT NOTE
The deletion will only succeed if there are no existing transactions already saved with the Tax Status being deleted. You have two options if existing transactions were entered with an incorrect Tax Status:
1. Firstly, delete/void all the incorrectly entered transactions. Then change the Tax Status, or delete it and enter a new one. Re-enter the transactions.
2. Enter a new Tax Status with the correct settings and the same 'Valid From Date' as the existing incorrect record. Any existing transactions with a transaction date on or after the 'Valid From Date' will need to be opened and resaved to pick up the new Tax Status. For invoices and credit notes, this requires opening and resaving at least one line item in each transaction. This 'resaving' step is extremely important as the Tax Status is set in the transaction and referenced during creation of the VAT Report.