Credit notes and VAT rate change

[Interconnect IT]

We have an awkward little problem:

We want to raise a credit note for an invoice raised - Vat then was 17.5% and now it's 15% - credit note is, of course, dated today.

If the client was VAT registered it'd be a non-issue, really, as it would all come out in the wash for him. But he's not. I'm tempted to offer him an hour of work in credit as it'd probably save us time, overall! Credit notes aren't done often but the original invoice had been a mistake so he deserves his money back 100% really.

Is it possible to give the credit note at 17.5% our account system won't do it unless I start creating new account codes, which is a bit of a palaver for a tiny £60 credit!

 

[Jenni384]

I believe if the original invoice was subject to 17.5% VAT then the credit note must reflect the same.

Hopefully Kevin or 3pic will be along soon to confirm this.

 

[CassioAcc]

The VAT rate used for Credit notes should be the one used at the time of supply - so should be 17.5%

 

[DuaneJackson]

The VAT rate used for Credit notes should be the one used at the time of supply - so should be 17.5%

My understanding too.

 

[Interconnect IT]

Thanks chaps and chapette - I've raised this with the people who run our accounting system. I've just realised there's perhaps an easy way to tweak the setup just for this one transaction, but it's still rather clumsy and I'd rather the system coped with this properly! By and large it's very good at dealing with things, but it doesn't use effective dating in its parameterisation - but effective dating really confuses lower skilled end users and a lot of developers.

I just realised that in my haste I managed to completely break the grammar of my last sentence in the OP, sorry about that but it looks like you understood anyway