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Change your VAT scheme

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How to change your VAT scheme in Sage Accounting.


There may be a time when you need to change VAT schemes, for example, because you’ve reached a turnover threshold or because a different scheme would be more beneficial to your business. The following VAT schemes are available in Accounting:

  • Not Registered – VAT options aren’t available when entering transactions and no VAT calculates
  • Invoice Basis – VAT calculates on invoices and credits issued and received
  • Cash Basis – VAT calculates on payments and receipts

For more information about how VAT calculates on these schemes, refer to our help guide.

 CAUTION: We recommend changing VAT schemes at the start of a new accounting period after you’ve produced your final VAT Return for the previous scheme. To ensure VAT is accounted for correctly, you shouldn’t enter any transactions on the new scheme until you’ve ran the return and changed your scheme.