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How to create a VAT only invoice or credit

Created on  | Last modified on  Highlight Matches

Summary

Steps to create a VAT only invoice or credit in Sage Accounts.

Description

There may be occasions where you need to create an invoice or credit for just a VAT amount, maybe for an adjustment or refund.

This article explains how to do this in your Sage Accounts software.

 TIP: Looking to change the VAT amount or rate on an existing invoice/credit? Check out the article on how to Correct transactions instead >

Resolution

Check or amend the Item VAT Amendable option
To amend the VAT element of an invoice or credit, you must ensure the Item VAT Amendable setting is selected.
  1. Click Settings then Company Preferences then VAT tab.
  2. If it's clear, select the Item VAT Amendable check box then click OK.
If required, this option can be cleared once the VAT only invoice or credit has been entered.

Change the VAT element of an sales invoice or credit using Edit Item Line
  1. Invoices and credits > New invoice or New credit > create a service invoice or credit and enter the required invoice details.
  2. Click the first invoice item > Press F3.

Alternatively, double-click the required line or click the arrow next to the invoice details.

  1. In the Values section, ensure that the Unit Price is zero and in the VAT box enter the required VAT amount.
  2. In the Posting Details section, ensure that the correct tax code appears, for example T1.
  3. Click OK then Save then Close.
  4. Update the invoice or credit note to the ledgers when required.

The nominal code shown in Posting Details isn't used for this invoice, as the VAT amount is posted only to the Sales Tax Control Account and Debtors Control Account.

Change the VAT element of a batch invoice or credit for a customer or supplier

If you don't use the invoicing module, or you want to post a VAT only transaction to a supplier, you should post a batch invoice or credit.

  1. Customers or Suppliers click Batch invoice or Batch credit and enter the required information.
  2. Ensure that the Net column is zero and in the VAT column enter the required VAT amount.
  3. Ensure that the correct tax code appears, for example T1.
  4. Click Save then Close.

The nominal code shown isn't used for this invoice or credit, as the VAT amount is posted only to the tax control and the debtors or creditors control accounts.



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