How do VAT settings affect company’s transactions?
I have a company that has already been VAT registered. Now, if the VAT settings get turned on, do they affect transactions from before the company became registered or just the ones after?
I'm not sure how it would work. It's the first time that I need to retroactively change a client's VAT status, normally clients who use QBO set up from the start.
Transactions from before the first VAT quarter will not be included. Take a look in the VAT tab It will show you when is the first VAT quarter.
Don’y worry, only the transactions going forward will be included. I’ve done that more than once.
The transactions from before the company was registered will not be included. These transactions did not have the option to separate out the VAT.
Also, in the VAT tab It will show you which period is being treated as the first VAT quarter. Any transactions prior to this date will not be included.