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How can I create a "VAT Only" invoice?
I didn't get my VAT registration bumber until a couple of months after my company formed. I had already invoiced the client, but without adding VAT.
As I was actually VAT Registered, when the certificate finally arrived, I had to invoice the client for the VAT that should have been charged, and did so with a VAT Only invoice.
I am now adding all this info into FreeAgent - how can I specify that an invoice only contains VAT dating back to cover the last couple of months?
As I was actually VAT Registered, when the certificate finally arrived, I had to invoice the client for the VAT that should have been charged, and did so with a VAT Only invoice.
I am now adding all this info into FreeAgent - how can I specify that an invoice only contains VAT dating back to cover the last couple of months?
I’m confused
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Hi everyone
You can now create a VAT-only invoice in FreeAgent.
To do this, create a new invoice and add an invoice item using the new item type VAT and the total amount of VAT in the 'Total Amount' field:
Now, when you view the invoice, you'll see the full amount of this item charged only as VAT:
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Inappropriate?Have figured this out for myself now actually. I just created the VAT Only invoice with a date that fell inside that VAT period (both Invoice Date + Payment Received date), and now it balances up nicely. I specified "VAT Only" as the service so it looks right too. Leaving this up incase it helps anyone else.
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Inappropriate?I'm not sure this will create the correct VAT return numbers for you.
Since you're now registered, you could make the original invoice draft again (you'll need to remove the payment explanation first), which will then automatically update it to include the VAT.
You can then re-explain the original and VAT payments.
Make sense?
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I have a slightly different problem - I issued weekly invoices with VAT added before I presented the agency with my certificate. They honoured the invoices but didn't pay the VAT. They have advised me to issue a single VAT-only invoice to reclaim the amount. Is this possible? For the record I have repaid the VAT owed to HMCE. -
Inappropriate?I would do the following:-
1. Manually calculate the VAT and prepare and invoice manually.
2. Do A Journal Entry to Nominal Account 819 of a negative amount of the VAT on the VAT only Invoice
3. Do a Second Journal Entry to Nominal Account 001 of a positive amount of the vat on the vat only invoice
4. When the VAT is paid by your client, Enter a Manual Transaction Into The Bank from Other sales Income, if you are uploading bank statements tag the payment as Other sales Income.
The VAT return will have the vat only amount in there, the sales should also balance once the payment has been received, so dont do these transactions in stages do them all at once.
But as a suggestion I think it would be very, very beneficial to be ablt to raise a vat only invoice from a project to a client, it is an often needed tool !!1 Comment Add a comment
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Hi Phil I thought I understood your instructions but unfortunately my VAT bill for the period that I received the Lump Sum payment from my client has balloned to include the amount received. Any thoughts?
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Inappropriate?Thanks Phil - we're more and more aware we need to handle the VAT-only side of things more elegantly, and we're working on it...
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Inappropriate?Would it be possible to have a step by step on how to do this please? I mean creating a VAt only Invoice. -
Inappropriate?Well Simon, Ed and Darren I owe you an appology. The solution given above does not do the job, so dont try this at home please.
On reflection I woul do as follows ( based on Ed's first response ).
1. raise invoice without vat whilst you are not vat registered.
2. when payment is received I would not explain it until a vat invoice has been done as this locks the original invoice.
3. when you get your vat registration, raise a manual vat only invoice and send it off for payment
4. go into the original invoice, make it draft again, edit the date to bring it inside the vat quarter, your first, then change the item part of the invoice to include vat at prevailing rate and then mark as sent.
5. Allocate the first payment to this new invoice as a part payment
6. Allocate the next payment of the vat only invoice to the invoice in freeagent when it gets paid.
Sorry if my previous suggestion was unworkable :-)
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Hi Phil thanks for this the figures balance up now.
Darren -
Inappropriate?It may not refer directly to the original poster's problem, but we've also had need to create a VAT only invoice. It seems the simplest way achieve this is as follows.
1. Create an new invoice
2. Add invoice item for the value of the original service/product. Use the drop down select box to add the vat element (in our case this was at 17.5% as the job was from an earlier period)
3. Create second invoice item, and put the value of the service/product as a minus figure, and use the drop down to rate it at 0% vat. This creates a credit note for the service/product amount minus the VAT.
This gives you an invoice for just the VAT element that you can now reconcile against your payments and shows up correctly in the VAT return statement page. -
Inappropriate?Hi everyone
You can now create a VAT-only invoice in FreeAgent.
To do this, create a new invoice and add an invoice item using the new item type VAT and the total amount of VAT in the 'Total Amount' field:
Now, when you view the invoice, you'll see the full amount of this item charged only as VAT:
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The company and 1 other person say
this answers the question
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