VAT Corrections

There are many reasons why you may need to correct a previous transaction for a VAT error. Below are all the cases and the solutions. We assume a VAT rate of 15% for all examples.

SALES

  1. Sale of 100 with no VAT, subsequently discovered that VAT of 15 should have been added. The extra 15 is billed to the customer.
Accounting Software vat

Accounting Software vat

  1. Sale of 100 with no VAT, subsequently discovered that VAT of 15 should have been added. The extra 15 is NOT billed to the customer.
Accounting Software vat 2

Accounting Software vat 2

  1. Sale of 115 with no VAT. Subsequently discovered that VAT of 15 was owed.
Accounting Software vat 3

Accounting Software vat 3

PURCHASES

  1. Purchase of 115 with no VAT. Subsequently discovered that VAT of 15 could have been reclaimed.
Accounting Software vat 4

Accounting Software vat 4

For all above examples, if the VAT refers to a different VAT period than the original, edit the VAT Date for the current VAT period. Remember to press the Enter key to confirm all changes.

Of course if the change is for the current period, you can simply edit the transaction directly.