Changing VAT periods
Use the VAT Periods screen to freeze the VAT activity for a period in conjunction with a payment to HM Revenue & Customs.
Once a VAT period has been frozen, invoices created with an invoice date within a closed period must have a tax override date set.
- If the tax override date is set within the period, it changes history and is as if the invoice was created before the period was closed.
- If the tax override date is set to a date after the closed period (such as today’s date), the transaction will belong to the current period and will serve as a correction to an underpayment or overpayment made in the period that is now closed.
The VAT basis for the period can be marked as Accrual or Cash. The VAT rate sets the rate at which items with unknown VAT positions will be charged. If this rate later changes, the period in which the correction is applied will have a corrected VAT amount.
Once closed, a VAT period cannot be reopened.