Updating your office settings
Navigate to your office settings:
Understanding VAT Effective Dates
The VAT effective date determines when VAT begins applying to transactions. This ensures compliance with local tax regulations while maintaining accurate financial records. Setting an effective date allows you to segment transactions into VAT and non-VAT periods seamlessly.
Click the "VAT Registered" field:
Click the "VAT Number" field and type in your VAT number
Click the "VAT Registration Effective Date" field and enter your effective date:
Steps to set and adjust the VAT effective date
To correctly set and adjust a VAT effective date in Commspace:
Navigate to your VAT settings within your account.
Select your desired VAT effective date (e.g., 1 May 2025).
Save your changes to confirm the effective date. By setting this date, any transactions recorded on or after this date will have VAT applied automatically. However, you need to ensure historical transactions remain unaffected.
Updating your Partners
When you update your office VAT status, remember to also update your company's partner VAT status.
Navigate to your partner settings:
Edit your company as a partner:
Select the VAT registered checkbox:
Enter your VAT number and effective date:
Click on save.
Reprocess commission statements
To apply VAT correctly from the specified date, follow these steps:
Deallocate and unlink statements:
Identify all commission statements dated on or after your VAT effective date.
Deallocate and unlink these statements to remove existing associations.
Reallocate and relink statements:
Link each statement again to ensure VAT is correctly applied based on the new effective date.
This step ensures that VAT is not retroactively applied to periods prior to the effective date.
Accounts and billing
Please also send the instruction with the necessary documentation to [email protected] to update the billing details with the VAT number, as it doesn't automatically update on your invoices.
Ensuring compliance with VAT Reporting
Once the VAT effective date and reallocation process are completed, review your transaction records and VAT reports to ensure:
VAT is only applied to transactions on or after the effective date.
Historical data remains unaffected by the new VAT settings.
Perform regular audits to maintain accurate VAT records and to ensure adherence to tax regulations in your jurisdiction.