Becoming VAT registered - Changes Required

If you have been using Tradebox as a non-VAT registered business and are now becoming VAT registered, there are a number of changes you'll be required to make in Tradebox to ensure it deals with tax correctly going forward. If you are becoming VAT registered in a country other than the UK, click here for the relevant information. 

If you are using Tradebox to integrate with an accounts package, please ensure that you've made all necessary changes within your accounts before following this guide. Take advice from your accountant or accounts package provider to ensure this is done correctly. 

All orders processed after you make the changes in Tradebox will be subject to the new VAT treatment, so please make sure that all orders prior to your cut off date have been processed before making any changes to your settings.

In Tradebox itself, you will need to take the following steps:

1. In Configuration > Company Details, fill out the VAT Registration Number field. 

2. In Configuration > Tax Rates, change your default tax code from Non-Vatable to Standard Rated.

3. On the same page, change the EU B2B Sales tax code from Non-Vatable to EU B2B Sales.

4. In each sales channel, go to the VAT tab and check that the UK and Rest of World defaults are correct. Our suggested defaults for these are Standard Rated for the UK and Zero Rated for ROW. You should also check that the EU VAT Calculation Method setting is appropriate for your business' needs. If you have any queries about which tax codes you should be using for sales outside of the UK, please check with your accountant.

5. If you're using accounts integration, then within each channel go to Sage 50 > Tax Codes or Xero > Tax Rates and ensure that all Tradebox tax codes are correctly matched against your accounts software tax codes. 

6. If you are using stock control, the tax codes on your products must be updated. For users who are holding stock in their accounts software, the tax codes must be updated on the product records in your accounts first of all. 

• If you are using Tradebox stock control, import your products via CSV to update the tax codes.
• If you are using accounts software stock control, import your products from Sage or Xero.
• If you don't want to use stock control, but you sell products with a mixture of tax codes within the UK, please contact Tradebox support for advice. 

If you have any more specific tax requirements, our full guide to how Tradebox calculates tax can be found here. Or alternatively contact us to discuss your needs.

Ensure you've taken backups of both Tradebox and your accounts system prior to importing any data with the new settings.