Clarification from QF staff please (VAT return from QF)

VAT quarter: 1 February - 30 April. I started entering our transactions into QF wef 1 February.
Cash VAT.
Three issues have come to light when I have tried to create my VAT return and check for accuracy against my old system:

  1. Reverse charge entries are not included in the QF VAT calculations.
  2. QF seems to include some (see 3. below) EU purchases in box 9 and all EU sales in box 8, however these boxes are only for goods. We do not buy/sell any goods from/to EU (only services) so should not be included here.
  3. I have 11 transactions of Stripe fees in the quarter, however only 2 of them are being included in the QF return (box 7 & box 9).

After help from @ian_roberts, I have now found out that I can manually adjust the return, however should this be necessary? Should I be doing this under MTD? Shouldn’t it calculate properly in the first place? Can @QFMathew or @QFBeth confirm that 1&2 are a “feature” of QF and not a mistake I have made, and look at 3 for me? Thank you.

Hi @Silverfrost

What @ian_roberts mentioned is correct - QuickFile doesn’t currently support reverse charge for services, so an adjustment is required and permitted under MTD.

Our VAT return process has been tested and approved by HMRC, and the notes box was added as part of this process. Although this isn’t sent to HMRC, it’s there for reference if any queries are raised.

Thanks @QFMathew - any insight on 2 & 3?


I am still looking for details/confirmation/explanation for points 2 and 3 - can anyone help?

Thank you.

Hi @Silverfrost

Apologies for the delay - @QFBeth referred this to me earlier today but I’ve been out of the office all day so only now getting a chance to come back to you.

Regarding point 2 - As mentioned above, we don’t support reverse charge for services, only goods. If the payment is being treated as goods, then this would be the expected behaviour.

Point 3 - How are the payments tagged (e.g. are they to an invoice)? Are you on cash or accrual accounting?

Thanks for getting back to me.

I wasn’t aware that these boxes were connected with the reverse charge system, just the total amount of goods sold to/purchased from EU countries. Are there any plans for QF to support service businesses?

Yes, new purchase created each time and then the payment allocated as a bank transfer from the Stripe bank account. Cash accounting.

Boxes 8 and 9 aren’t connected with the reverse charge system, but they are connected with the EC goods acquisition system which is what QuickFile does when you tick the box that is mis-labelled “reverse charge”. In particular box 9 should be the total net value on which you’ve declared acquisition VAT in box 2.

For reverse charge the equivalent is that you declare in box 6 along with your sales the net on which you’ve put reverse charge VAT in box 1.

Thank you Ian for your confirmation and explanation. It is good to know that my understanding was correct. When things don’t go exactly how I think they should I do start to doubt myself and my understanding.

@QFMathew - issue 3. is now solved thanks to @ian_roberts

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