How to deregister for VAT?

Hi Joe,

In this case, you must head to Settings > Organisation > Details & Tax > Tax > Manage VAT Schemes > Add a new VAT scheme as non-VAT registered on the date you became so. Once this is done, when adding new invoices, the system will default the VAT rate as no VAT.

Please let me know if there are any further queries?

Tommy

Thanks for the swift response. I have several unpaid supplier invoices that I put on the system recently - should I void these and re-add them after adding the new VAT scheme?

Hi Joe,

No problem at all - if the invoices fall in the non-VAT registered period, you can click edit and update on the invoices which should pick up the VAT rate as no VAT.

Tommy

Ok, looks like my system is locked down by my accountant and they are away for the next 4 days. But I need to submit a VAT return today. So, can I simply continue to explain my bank transactions and set any between Jan 1st 2018 to Feb 28th 2018 to... 1) 'Exclude from VAT return' (VAT Rate field) and/or 2) 'Out of scope - Not on VAT Return' (VAT Treatment)

?

Hi Joe,

I have taken a look at your account and it doesn't seem as though you have set a Non-VAT registered scheme?

It is best to speak with your accountant to ensure that you are processing transactions correctly.

Tommy

ok, looks like my accountant has set a new scheme up. My effective date of deregistering for VAT is 1st Jan. But I cannot set 'No VAT' for my invoice that I received on 1st Jan (?)

Also, I had previously tried to submit my final VAT return for 01/12/2017 to 31/12/2017, but the system came back with the error:

The VAT Period you have entered 2017-12 for the VRN 924105946 was not found, please check and resubmit if necessary.

How am I supposed to submit this final VAT return?

Hi Joe,

I have taken a look, it seems that the new scheme has been set up from 02/01/18, therefore, all invoices on or after this date will have the option of No VAT. Also, the error message is returned from HMRC and would indicate that the VAT period for the return is not in line with their records. I have noticed that the last return does not follow a quarterly cycle.

In this case, I would suggest deleting the return and resubmitting this as a quarterly return. Alternatively, you can submit this externally through the HMRC portal.

Tommy

My accountant assures me that the 'No Vat' scheme has been updated and starts from 1st Jan 2018, but I still cannot set the VAT drop-down list to 'No VAT' on an invoice dated 1st Jan 2018 (?)

Hi Joe,

I've taken another look at the account and there doesn't seem to be a Non-VAT registered scheme as of 1st Jan 2018? Are you able to re-add this and attempt to raise an invoice with the option of No VAT please?

Tommy