We have reached a threshold with our charity which we have needed to register for VAT. We hit the threshold a little further back so in order to complete our return correctly I need to backdate our VAT.
If I turn VAT on for all the products which require this - will Shopify report VAT for historical sales? If not, how do we work out this cost?
I tried it with one item but it didn't show any overall transactions of that item with VAT on them.
Please can someone explain how I can do this?
Hi, I'd generally suggest fixing any backdating issue manually - eg download orders into a spreadsheet and work out from that, ie if UK Vat take the gross order values for the period after hitting the threshold and then work out as 20/120 of the value for the vatable products.
And then set your live systems correctly going forward from a set date. Not sure how shopify reports would be affected, one would think they shouldn't change retrospectively, it would be a good idea to test it with something sold before and after the change to check.
I absolutely agree to your viewpoint.However,I have to include that In simple words VAT or value added tax is A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally. Like an income tax, it is based on the increase in value of a product or service at each stage of production or distribution.There are several consequences occurs regarding the vat registration.For overcoming this sort of consequences should follow the suggestions as guided by the tax residency certificate uae .They are the ultimate option to avoid this discrepancy.