I have 2 invoices from December that I have charged VAT on but have now been told they should have been 0% VAT. Year End is done. Can I ammend these invoices?? What is the correct way to ammend them if I can? Hopefully someone can help me. Thanks so much.
Are these sales invoices or purchase invoices? If they are sales invoices, did the invoices actually go out to the customer with VAT on them?
If they were sales invoices that went out with VAT on them, then the error is purely a balance sheet one and you can correct it in the current year. If the error was in your posting them into your accounting system - be they sales or purchase invoices - then it does affect the P&L. If the amounts aren't too large, I'd be inclined to correct these in the current year as well.
As to what you actually need to do, that depends on the answers to my questions. :)
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
They are sales invoices, they did go to the customer with VAT on them. I'm in Ireland so not sure if it makes a difference. But the invoices went to a Principle Contractor who now pays the VAT to Revenue. He took the net figure and paid VAT from that and paid us the balance. He should have requested Invoices with 0% VAT but didn't. I did Year End 31st Dec.
It sounds to me, then, that what you could do is post a credit note for the VAT only (ie nothing in for the net, and the amount of VAT in for the VAT) - it won't impact your P&L at all, so you can date it 1st January. I'm assuming the contractor doesn't need the credit note since he's corrected things his end before paying, so you could just post that to your system as a simple transaction rather than raise an actual credit note to be sent out.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Thanks a mil Vince, I will try that. Yes I think the Contractor is happy enough with what he has. How do I post it to my system without raising an actual credit note? Marianne.
That depends what software you are using. I'm most familiar with Sage, in which you would go to Customers => Batch Credit. For other software, others would have to advise.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
