In advance of VAT registration, the system can be set up to display VAT breakdowns of any fees taken or revenue calculated based on the users' client account.
1. Becoming VAT registered
Please contact the Financial Support team ([email protected]) before becoming VAT registered, so your system can be updated as required.
The support team will require confirmation of the following points:
The VAT registration number (VAT number)
If your fees will become inclusive or exclusive of VAT
For example, a management fee of 12% will now become 12% (10%+VAT)
For example, a management fee of 12% will now become 14.4% (12%+VAT)
2. General guidance
SME Professional would advise users to complete the following steps before becoming VAT registered:
2.1 Statements
Once VAT registered, the system will be updated to show VAT where applicable. Any future statements generated for periods before VAT registration will also show VAT on fee deductions.
As a result of this, it is recommended that users process statements and payments for all owners before going VAT registered, for payments where VAT does not apply.
For example, a user becomes VAT registered on the 1st of October. The user will generate custom annual summary statements for all landlords for a date range up until the 1st of October.
This is recommended as we cannot guarantee that we will be able to change your VAT status ad-hoc for the generation of individual landlord annual statements.
2.2 Profits
Please ensure that any profits are transferred before VAT registration and generate the necessary reports. This will ensure that this change will only apply to future fees.