What will changing the VAT rate do?

  1. Once Omni has posted a transaction (and it is no longer editable) that transaction will keep the vat rate used at the time of processing. So, you will be able to go back and reprint invoices for previous periods without the VAT totals having changed, and your VAT Return will reflect the correct VAT values (as long as you used the right VAT code when posting)
  2. On un-posted items, however, the same also applies. Because you can override the calculated VAT amount, the VAT amount needs to be stored and does not refresh (unless you change something, such as the exclusive amount or rate). This means that you will need to edit your outstanding batches, namely Nominal Ledger Journals, Customer and Supplier Journal Batches, and Batched and Recurring Banking Transactions (where you are posting payments directly to nominal ledger expense accounts).
  3. Sales Orders, Proforma Invoices, Quotes,  Recurring Invoices and Purchase Orders are a bit different, as they do not have VAT override capabilities. They do however store what the rate was (for each line item) at the time of saving the document. This does not however refresh automatically when invoicing the document. We have created a script for 7.16.63 that will refresh all the vat rates for all outstanding Sales Orders, Quotes, Proformas, Recurring Invoices and Purchase Orders. Let us know if you use any of these and we will send you the script to refresh the VAT rate on those documents.  Note this script only runs on the latest version of Omni Accounts 7.16.63. If you are not on the latest version then you will have to manually edit and amend the documents.
  4. If your Selling Prices are marked as Inclusive of VAT, you will need to update them to reflect the new VAT Rate. You can do this manually by editing each Stock Item, by exporting the Stock Codes and Selling Prices into Excel and working out the new price and then importing back into Omni or by using Price Update Batches.
  5. Please note that auto-posting Settlement Discounts, once you have changed your VAT Rate, will post the credit at the new VAT Rate. If you need to post at the old VAT Rate please use the Journal Settlement Discount option.