In this article, we will show you how to set up VAT payer status and what consequences this will have.
How to tell in Flexi that I have reached the VAT payer threshold
Unfortunately, the application does not include any feature that monitors VAT registration thresholds, so you will need to track this limit yourself. If you have reached the threshold, the following section explains how to proceed in Flexi.
How to set up VAT Payer status
VAT Payer status can be configured in the Company - Settings menu. On the Legislation tab, check the VAT Payer: checkbox.
You can then save the settings using the OK button. A dialog box will appear where you should select Create new settings valid from. This step is critically important — if you were to select Edit existing settings instead, the application would treat you as a VAT payer even for previous periods when you were not yet registered.
In the date field, enter the date from which you became a VAT payer and save:
If you were to return to the company settings now, you would see that the VAT Payer checkbox is unchecked through the end of 2022 and checked from 1 January 2023:
This setting will make all VAT-related fields accessible, such as the VAT rate, VAT posting, and VAT lines, which were previously unavailable.
Issuing a credit note for an invoice from a non-VAT payer period
The process described above is fairly straightforward, but you may find yourself needing to issue a credit note for an invoice from a period when you were not yet a VAT payer. If you follow the standard process via Services - Create Credit Note, the credit note will copy the invoice settings and Flexi will display an error:
In this case, you can create the credit note manually, for example by copying the invoice and changing the document type to Credit Note:
Alternatively (and this is the riskier approach), you can disable VAT payer status just for this document, create the credit note, and then re-enable VAT payer status. However, we do not recommend this approach. It is also more time-consuming than simply making a copy of the invoice.
VAT returns for invoices issued when we were not officially VAT payers
Similarly, if you need to include invoices from a period when you were not yet a VAT payer in a VAT return, you can bring the VAT amount into the return via Accounting - Internal Documents, where you enter the VAT amount and the tax point date corresponding to the period in which the amount should be included.
Another option is to adjust the VAT payer registration date, but again, we do not recommend this approach.