QB 2002 Changing VAT rate

Posted by Jon on November 29, 2008, 5:11 am

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obviously need to change it from 17.5% to 15% but a bit confused as to
whether I can just alter rate on standard code or whether I need to create
new code. QB help implies if I alter standard code all transactions
including previous will be afffected. If I do create a new code presumably
my VAT 100 reports will go to pot?

Any help or advice much appreciated.

Thanks

Jon

Posted by www.GymRatZ.co.uk on November 29, 2008, 5:33 am

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Jon wrote:

> obviously need to change it from 17.5% to 15% but a bit confused as to

> whether I can just alter rate on standard code or whether I need to

> create new code. QB help implies if I alter standard code all

> transactions including previous will be afffected. If I do create a new

> code presumably my VAT 100 reports will go to pot?

> Any help or advice much appreciated.

> Thanks

Hi Jon.
I just bumbled in and changed the standard rate.
It did aaffect all previous transactions, but not to the point of
becoming a pain.
What it actually did was changed the "sold for" price for each item on
the sales receipts but kept the correct VAT and total price

so a previous transaction for an item retailing at:
£23.99 of which £3.57 is VAT total £23.99
After changing Standard rate has changed to
£23.48 of which £3.57 is VAT total £23.99

Whereas now when the same item is added we get
£23.99 of which £3.13 is VAT total £23.99

so yes, it does screw about with previous figures but because
transactions have been recorded and deposited it's just twiddling the
only figure that isn't locked to put the transaction back in balance.

Much easier for me than going through each item asigning a new VAT code
or having to change every transaction to a defferent code.

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Posted by Jon on November 29, 2008, 8:08 am

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> Hi Jon.

> I just bumbled in and changed the standard rate.

> It did aaffect all previous transactions, but not to the point of

> becoming a pain.

> What it actually did was changed the "sold for" price for each item on

> the sales receipts but kept the correct VAT and total price

> so a previous transaction for an item retailing at:

> £23.99 of which £3.57 is VAT total £23.99

> After changing Standard rate has changed to

> £23.48 of which £3.57 is VAT total £23.99

> Whereas now when the same item is added we get

> £23.99 of which £3.13 is VAT total £23.99

> so yes, it does screw about with previous figures but because

> transactions have been recorded and deposited it's just twiddling the

> only figure that isn't locked to put the transaction back in balance.

> Much easier for me than going through each item asigning a new VAT code

> or having to change every transaction to a defferent code.

Interesting, thanks. I note intuit now offer advice. Both solutions make no
mention of what you have discovered or its impact. Tempted to go with
altering the standard rate and altering the rate of individual items.
Hopefully that will be easier in terms of the VAT100 rather than setting up
a new temporary rate.

http://knowledgebase.quickbooks.co.uk/detail.php?&qbid=QBUK2893&product=&buid=QBUK&cat=

http://community.quickbooks.co.uk/discussion/lofiversion/index.php/t35377.html

Regards

Jon

Posted by Michael J Davis on December 10, 2008, 7:20 am

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>> Hi Jon.

>> I just bumbled in and changed the standard rate.

>> It did aaffect all previous transactions, but not to the point of

>> becoming a pain.

>> What it actually did was changed the "sold for" price for each item on

>> the sales receipts but kept the correct VAT and total price

>> so a previous transaction for an item retailing at:

>> £23.99 of which £3.57 is VAT total £23.99

>> After changing Standard rate has changed to

>> £23.48 of which £3.57 is VAT total £23.99

>> Whereas now when the same item is added we get

>> £23.99 of which £3.13 is VAT total £23.99

>> so yes, it does screw about with previous figures but because

>> transactions have been recorded and deposited it's just twiddling the

>> only figure that isn't locked to put the transaction back in balance.

>> Much easier for me than going through each item asigning a new VAT code

>> or having to change every transaction to a defferent code.

>Interesting, thanks. I note intuit now offer advice. Both solutions

>make no mention of what you have discovered or its impact. Tempted to

>go with altering the standard rate and altering the rate of individual

>items. Hopefully that will be easier in terms of the VAT100 rather than

>setting up a new temporary rate.

>http://knowledgebase.quickbooks.co.uk/detail.php?&qbid=QBUK2893&product=

>&buid=QBUK&cat=

>http://community.quickbooks.co.uk/discussion/lofiversion/index.php/t35377.html

(Thanks for those references.)

I'm using a pretty ancient copy of QB, so this may not apply to you. But
if, for any reason the standard rate is changed, and I (or my staff)
revisit a transaction at the old rate, it can be changed to the (new)
standard rate.

This would certainly throw out this quarter's VAT 100 return.

We've created a 15% rate for the next 13 months. Then we can revert to
17.5% (or 19% as I forecast it will be!)

Mike

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Michael J Davis
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