• Registered: 10/01/2010
  • Posts: 11

Topic: VAT Rate Changed

The primary VAT rate in Ireland moved from 21% to 23% at the end of 2011.

Any advice would be greatly appreciated.

I have not completed all invoice entry for 2011, in fact I'm quite a bit behind on it! However, I have 2012 transactions that are being entered (currently with the wrong VAT being applied).

How should I handle this?
Do I simply change the existing 21% rate to 23%? If so I presume I need to close out 2011 first, right?
Do I create a new VAT rate leaving the old one in place and switch customers to using the new one?

Thanks for any suggestions ...

Gareth.

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: VAT Rate Changed

I guess you should consult an accountant. However I think you should create tow tax types, 21 and 23 %.
Also create 2 tax groups (f.i. tax 2011 and tax 2012).
Then when creating documents you should swap the tax group on your customers/suppliers depending on which year you are working on.

I guess this will be the best solution.

/Joe