Running the VAT Cash Accounting Scheme
If you are running the VAT Cash Accounting scheme, you are liable only for VAT on your invoices less credit notes, either when you pay your suppliers, or when you receive payment from your customers. Sage Line 50 can automatically calculate your VAT Return for you based on the VAT Cash Accounting scheme. Simply indicate in your Company Preferences that you wish to operate VAT in this way.
If you are using the VAT Cash Accounting system, your opening balances must be entered as individual transactions, with the relevant VAT codes. You can do this via the Invoice and Credit Note options in the Customers and Suppliers options.
Related Topics
How your VAT Return is Calculated
To Change to VAT Cash Accounting
Printing the VAT Return Reports
Reconciling your VAT Transactions
Clearing your VAT Control Accounts