What are the VAT Considerations for Opening Balances?

Sage Line 50 provides two ways of accounting for VAT: Standard VAT or VAT Cash Accounting.

Using the standard VAT scheme, Sage Line 50 calculates the VAT return on the invoices/credits you have raised for your customers or received from your suppliers. It also calculates the VAT return on any bank/cash payments or receipts or nominal ledger journals that have tax codes other than the non-vatable tax code (T9 by default).

Using the VAT Cash Accounting scheme, Sage Line 50 calculates the VAT return on the invoices/credits which you have received payment for from your customers or you have paid to your suppliers. It also calculates the VAT return on any bank/cash payments or receipts or nominal ledger journals which have tax codes other than the non-vatable tax code (T9 by default).