SageForum for UK versions of Sage 50- Help and support.

Hi

I de-registered for VAT a few years ago... but never changed the default tax codes... I didn't know til I was reading the forum here yesterday!

not bothered about previous years, and not bothered about this new year as i'm starting afresh in v12 (using v11 previously)...

but what can I do about last years entries - i've not done end of year yet...

most of the tax codes are correct as T9 (including all invoices)... some of the purchases are T1, some entries are T0 and the electricity bills are T5 - if I read previous posts correct, I should change all entries to T9 ?

is that right ??

JD

The issue you face is that part of the cost of those transactions has gone into the VAT account (to be reclaimed / paid to the VAT man) but in fact that never happened. The entire amounts are costs of sales and sales.

You need to be pragmatic about it. There is little to be gained out of working out the nominal splits.

I would create 2 nominal codes for the mis-appropriated VAT. One for sale and one for purchases.

In theory you should then journal the balance of the sales VAT control to the Sales account and the Purchase VAT control to the Purchase account.

This assumes yuo have been doing your VAT journals and that the VAT account is split and that it is correct.