Oh dear, it turns out we don't get VAT back...

[Maf King]

On Wednesday 15 Jun 2011 09:25:29 Colin Law wrote:
> On 15 June 2011 09:16, Keith A. Milner <maillist at superlative.org> wrote:
> > ...
> > The only thing you may wish to do is move the VAT account into a
> > different location in your account tree (such as under Expenses) to make
> > reporting easier.
> 
> I am guessing that the OP's problem is that he wants what is currently
> allocated to the VAT account to be distributed to multiple expense
> accounts.  So  at the moment he buys fuel, for example and has split
> it to Expenses:fuel and VAT, and he has bought stationery and has
> split it to Expenses:Stationery and VAT.  He now wants the entire bill
> for each of to go just to the Expense accounts.
> 

Hi Stu, 
I can't think of a particularly simple way to "un-split" all that VAT back 
into expense categories.

I see 3 options:
1. Edit the tax table so that standard rate VAT is 0%.  Unpost each bill in 
turn and when GC asks about resetting the tax tables, say yes. Then repost the 
bill, hopefully with a 0% split to VAT. *I Haven't tried this*!

2. Delete all the bills - (hint delete the A/P account might help here), and 
start over - although thinking again about this, deleting bills is erm, 
_awkward_, yeah this is a bad idea. don't do this.

3.  Live with it as Keith suggested, and change how you record things from now 
on.

I've thought of 2 more  options while typing:

4.  Look at each expense category in turn, add up all the relevant VAT splits 
and put a balancing txn in from VAT to Expense:foo.  what I mean is say you 
have spent a total of £300 (ex vat) on fuel and £150(ex vat) on stationary.  
You know that the vat on the fuel is 20% of 300, so move £60 from VAT to 
Expenses:fuel.  Similarly, 20% of £150 = £30 move from VAT to Exps:stationary.  
Hopefully you'll end up with VAT at 0 and all the expense categories showing a 
final balance of $TOTAL (inc VAT).  You may even be able to coax the 
transaction report to subtotal the VAT account by other splits etc, which will 
make the process less prone to human error.

5.  Register for VAT - I believe that you can go back in time and reclaim VAT 
from before you registered, but *Take Professional Advice* on the implications 
of that for your business - IANAA.  and it could be a sledgehammer cracking a 
very small nut. - but I've never found the VAT returns to be hard work to fill 
in.  If anything, it makes sure that the books are right 4 times a year, so 
year end is simpler IMHO. 

HTH,
Maf.