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VAT registration and territory

If your business is registered for VAT, Sales Scribe needs to know so that it charges and reports VAT correctly. This guide covers the VAT Registration setting, your VAT Number /…

VAT registration and territory

If your business is registered for VAT, Sales Scribe needs to know so that it charges and reports VAT correctly. This guide covers the VAT Registration setting, your VAT Number / Tax ID, your VAT registration date, your VAT accounting scheme and your VAT Territory.

Note: This guide explains where the settings are and what they do in the app. It is not tax advice. If you are unsure whether or how to register for VAT, speak to your accountant or your local tax authority.

Before you begin

  • You need to be signed in with the organisation selected.
  • Go to Settings → Organization (or open the Settings hub and choose Organization details).

Turn on VAT registration

  1. On the Organization page, find VAT Registration.
  2. Switch on Organization is VAT registered.
  3. A VAT Registration Details section appears. Enter your VAT Number / Tax ID (this is required once you are registered).
  4. Select Update to save.

[Screenshot required: VAT Registration toggle and the VAT Registration Details section with the VAT Number / Tax ID field]

Enter your VAT registration date and scheme

In the same VAT Registration Details section:

  • VAT registration date — the effective date on your VAT registration certificate. Your first VAT return in Sales Scribe starts no earlier than this date, and no return can be started until it is set (see VAT returns).
  • VAT accounting scheme — how your business accounts for VAT:
    • Standard accounting — VAT is due by the invoice date, whether or not the invoice has been paid. This is the scheme Sales Scribe prepares VAT figures for.
    • Cash accounting and Flat-rate scheme — choose one of these if it is the scheme your business uses. Sales Scribe can't prepare VAT figures on these schemes yet, so the VAT Summary says so rather than showing figures worked out on the wrong basis.

Select Update to save.

Choose your VAT Territory

For organisations based in Great Britain, a VAT Territory choice appears in the same section:

  • Great Britain (England, Scotland, Wales) — standard UK VAT rules.
  • Northern Ireland — follows EU VAT rules for goods and UK rules for services.

Choose the one that applies to your business and select Update.

Sales Scribe can also infer a VAT territory from your addresses, so in most cases the sensible default is already selected.

What happens next

  • When your organisation is VAT registered, VAT is calculated on invoice and purchase lines using the tax rate on each line, and your VAT Number / Tax ID is shown on your documents.
  • Your VAT figures feed the VAT Summary report, which totals the VAT you have charged (output VAT) against the VAT you have been charged (input VAT).
  • If your organisation is not VAT registered, the VAT territory is treated as Great Britain by default and no VAT number is required.

Important notes

Note: Turning VAT registration on or off changes how new documents treat VAT. It does not rewrite documents you have already issued.

  • The VAT Number / Tax ID is mandatory whenever VAT registration is switched on — the page will ask you to fill it in before it saves.

Troubleshooting

  • "VAT number (Tax ID) is required" when saving. You have VAT registration switched on but the VAT Number / Tax ID field is empty. Enter your number and save again.
  • The VAT Summary says VAT returns can't be prepared on your scheme. Your VAT accounting scheme is set to cash accounting or the flat-rate scheme. If your business uses standard accounting, change the scheme and save.
  • You cannot see a Great Britain / Northern Ireland choice. The territory choice is shown for Great Britain-based organisations. For organisations based elsewhere, the territory is set automatically.
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