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Out of scope VAT
Hi,
I am on the VAT flatrate scheme.
I've created an invoice for a contact which is based in Australia, I've set the charge VAT setting to "only if in UK", I then create the explanation from my bank statement to match up with the invoice, this is fine. However this amount now shows in my VAT turnover, but as its from a country outside of the UK it is out of scope of VAT and shouldn't show.
I can get around this by not creating an invoice and just setting the explanation as "other sales income" and then marking VAT as N/A, this now correctly doesn't include it in my VAT turnover.
It would be nice if I could keep these transactions as invoices paid rather than "other sales types".
Cheers
I am on the VAT flatrate scheme.
I've created an invoice for a contact which is based in Australia, I've set the charge VAT setting to "only if in UK", I then create the explanation from my bank statement to match up with the invoice, this is fine. However this amount now shows in my VAT turnover, but as its from a country outside of the UK it is out of scope of VAT and shouldn't show.
I can get around this by not creating an invoice and just setting the explanation as "other sales income" and then marking VAT as N/A, this now correctly doesn't include it in my VAT turnover.
It would be nice if I could keep these transactions as invoices paid rather than "other sales types".
Cheers
I’m frustrated
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Inappropriate?Hi Carl,
With apologies for taking a while to answer this question.
I have rung HMRC just to double-check that these invoices should not be included as part of your VAT flat rate turnover and you're quite right - they shouldn't.
I will add this to the list of issues we need to look at, because although there is the workaround which you've found, it would be good if those sales could be posted as invoices too.
Kind regards,
Emily -
Inappropriate?Emily, Carl, did anything come of this?
This may be related to my recent post:
http://community.freeagentcentral.com...
But its not entirely clear. Carl, are you concerned about your outside of scope supplies appearing in the turnover figure in Box 6 in your VAT return? If so, it seems that these sales must be included in Box 6 after all.
If you're worried about the VAT due being calculated on this, it definitely shouldn't - its definitely not considered part of your flat-rate turnover for the purposes of calculating the VAT due - but looking at my own accounts FreeAgent seems to be doing this correctly (all non-VAT supplies have zero VAT payable). -
Inappropriate?Hello Carl,
Further to Luke's posting (which I have answered in the post he has linked to), could I also ask if you're OK with this now?
Kind regards,
Emily
EMPLOYEE
