To record the postponed VAT, you will need a new VAT code. This is set up as follows:
Choose Show>Tax Rates
The Tax Rates list window will be displayed.
Click the New toolbar button
The tax rate entry window will be displayed.
Enter a tax code for Postponed VAT (we suggest "VPA")
Note: The tax code must start with "V", or whatever letter is the first character of your normal VAT code(s) if you have changed it.
Give it a description of "Postponed VAT", ensure the Tax Type is "G.S.T. or V.A.T.", and tab through the two account fields which will auto-populate with your default VAT accounts
Leave the tax rates as zero, but set the All Tax radio button
