How Does Reopening and Closing Deals Affect the VAT Return?

Quick Answer: It Does Not Directly Affect the VAT Return.

Reopening and subsequently re-closing a vehicle deal does not alter the VAT figures already reported to HMRC.

The Key Distinction: Tax Point vs. Nominal Date

The VAT return is always based on the Tax Point, which is the Invoice Date.

• The Invoice Date determines when the VAT is legally reported to HMRC.

• Reopening or closing a deal only affects the Nominal Dates (the dates the underlying entries hit your ledgers) but cannot change the original Invoice Date.

Therefore, these actions will not change the figures submitted on your VAT return.

Where the Actions DO Have an Effect

While VAT is unaffected, reopening and closing deals do influence the timing of your internal management reporting:

• Profit Reporting: These actions control when the unit sale is reflected in your profit reports, specifically visible in the Sales Managers > Profit Report section.