How do I credit items sold at a previous V.A.T. rate?

Summary

This article explains how to raise a credit note for items sold prior to the change in VAT rate.

United Kingdom Customers:  Current HMRC guidance given to us and to some of our customers states that credit notes for vat-able items sold before 1st January 2010 should be raised with V.A.T. at 15%, i.e. the rate prevailing at the time of the invoice.

More Information

Considerations

• Check that the goods were sold prior to 1st January 2010.
• If you have changed your retail prices, you will need to know the price you charged first time around.

Process

• Once you have decided that you need to credit the goods, you must exit from your current option back to a menu. For example, this should be the "Parts Counter" menu, or the "Stock Control" menu or the "Workshop menu", or "Vehicle Sales" menu.
• From the menu, press <Alt+V> to confirm that you wish to temporarily change your V.A.T. rate to the old rate.
• Go back to the relevant programme and raise the credit note.
• Once you have completed the credit note, you must exit from your current option back to a menu as before.
• Your V.A.T. rate will now be reset to current V.A.T. rate.
• Carry on working as normal.

See also

• How do I edit VAT Rates?

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Keywords AND Misspellings

credits, vat, 17.5%, 15%, HMRC, Change, Rate, V.A.T., Invoice, Value Added Tax, Change VAT