VAT Receipts & Payment Requests (UK-Only)

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This article outlines how to manage Value Added Tax (VAT) receipts and payment requests in the UK for users handling their Client/Trust Accounting. It's important to understand how to issue, send, and reverse VAT receipts to ensure compliance with financial regulations. Additionally, the procedures for handling multiple payment requests will be explained.


Issuing and Sending VAT Receipts

Once a tenant makes a payment against a Payment Request, a VAT Receipt must be issued. Here's how you can send that receipt:

  1. View the VAT Receipt within 
  2. Select either Email to Tenant to send it directly via email or Print Receipt if you intend to mail it physically.

A notification banner will indicate if a VAT Receipt has been previously emailed or printed, ensuring you don't send duplicates.


During bank reconciliations, you can batch-send VAT Receipts related to the reconciled payments by clicking Send VAT Receipts.


Distinguishing Payment Requests and VAT Receipts

In your list of financial documents, Payment Requests are indicated with a green icon, which helps differentiate them from Invoices. Similarly, VAT Receipts also utilize a green icon for distinction from regular Receipts.


Reversing VAT Receipts

If a tenant's payment is reversed:

  1. A Reversal VAT Receipt is auto-generated.
  2. Send this to the tenant in the same way you would a regular VAT Receipt. If the original receipt was never sent, the reversal doesn't need to be sent either.
  3. To view the original VAT Receipt, click on the View Original VAT Receipt button.
  4. The Reversal VAT Receipt will display negative amounts to indicate the reversal.


Payment Request Credit Notes

  • A Payment Request Credit Note is generated when a credit note is made against a property with Payment Requests active. They differ from regular credit notes as they are not taxable.
  • Credit notes cannot be allocated against Payment Requests under certain conditions, including lack of a related property assignment or when the property is not configured to use Payment Requests.


Handling Multiple Payment Requests

When reconciling bank statements:

  • It's not possible to pay an Invoice and a Payment Request with a single payment entry. Instead, you must reconcile part against one and place the balance in a Suspense Account, then resolve against the other.
  • Currently, you can receipt only one payment request at a time. Receipt each payment request individually.
  • After marking payment requests as paid, you can reconcile one bank receipt against the multiple paid requests.


By following these steps, you'll be fostering efficiency and accuracy in managing VAT-related transactions. 

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