Sage Line50

Froggyplait

Hope someone can help!

I work for a small company that use Sage line 50, there is a customer that they were charging VAT @21% but that customer is actually exempt.

There were 10 invoices that the customer paid the net amount on, can I raise a credit for the VAT or do i just have to re-issue the invoices minus the VAT?

henryd65

Probably the easiest way is to issue one credit note for the vat inclusive invoices and then issue one invoice for the total net amount.

I think you may need to show the customer's vat exemption number on the invoice.

smcgiff

If they are exempt they will need to prove it, such as providing their VAT 13B form - And then what Henry said.

Herbalist

Hi,

Did you enter the invoices through the invoicing module or through the batch invoicing button on the customers screen?

If it was through the invoicing module you could go into corrections and change them but I would be careful of that as then while the invoice balances will be correct the original invoices will still have the amount with vat on them and also if they have already paid you then the amount would paid would be larger than the amount on the amended invoices.

I think your best bet is to get them to provide proof of exemption. Then issue a credit note to them for the amount of VAT charged. This will update their balance and your VAT return reports.

Then in the customer record you can set a specific default VAT rate for the customer so be used on every invoice. This means the system will fill in that vat rate for you on every invoice you create for them in the invoicing module going forwards.

Froggyplait

Hey guys, thanks for the help.

Herbalist, yes it was through the invoicing module, sorted it with the credit note for the VAT. I was very worried about the VAT return figure, but everything ok now. Thanks