By default QuickFile accounts for EC acquisitions as if they were goods rather than services, so some figures would need to be adjusted for services, although none affecting the tax calc (which would be zero).
In the case where a business pays £100 to Google for Adwords.
- On its VAT return, the business will include £20 of VAT in box 1 (standard UK rate 20%).
- This would then get reclaimed again in box 4.
- The £100 net expense then gets added to box 6 and box 7.
For EC purchases QuickFile will put the NET in box 9, this needs to be moved to box 6 and the VAT in boxes 2 and 3 need to be moved to box 1.
