How to Raise a VAT-Only Invoice in SQL-Ledger

In August 2009, a user named Dominic Raywood (username “RubiconCSL“) posted on the SQL-Ledger User Forum seeking assistance on how to raise a VAT-only invoice using SQL-Ledger version 2.0.8.

Issue

Dominic was working with a client who used self-invoicing, meaning the client raised invoices on his behalf. The initial invoice issued did not include VAT because they hadn’t received his VAT registration details. As a result, Dominic needed to raise an invoice solely for the VAT amount corresponding to that initial invoice.

Question

How can I raise my own invoice just for the VAT for that initial invoice in SQL-Ledger?

Solution Provided

A forum member, “dws,” offered the following solution:

1. Add an Accounts Receivable (AR) Transaction:

• Navigate to the AR Transaction module in SQL-Ledger.

1. Uncheck the Tax Calculation Option:

• When entering the transaction, uncheck the tax option so that tax is not automatically calculated on the amount.

1. Enter the VAT Amount Manually:

• Input the VAT amount as the transaction amount.

1. Ensure Proper Tax Reporting:

• Using an AR transaction without a base amount but with a tax component creates a tax-only transaction or invoice.
• This method ensures that the VAT amount is included in tax reports. If a General Ledger (GL) transaction were used instead, the tax would not be included in the tax reports.

Dominic’s Feedback

After implementing the suggested steps, Dominic confirmed that the solution worked:

“Brilliant, thanks. Just what I needed—I had overlooked your ‘uncheck the tax’ bit. All working now.”

Summary

To raise a VAT-only invoice in SQL-Ledger:

• Create an AR Transaction without a base amount.
• Uncheck the Tax Calculation to prevent automatic tax computation.
• Manually enter the VAT amount as the transaction amount.
• This approach generates a tax-only invoice, ensuring the VAT is correctly recorded and appears in tax reports.

Notes

• This method is useful for situations where VAT needs to be invoiced separately due to initial omissions.
• Always verify that this process complies with your local tax regulations and accounting standards.

---

By following these steps, you can effectively issue a VAT-only invoice in SQL-Ledger, ensuring accurate accounting and compliance with tax reporting requirements.