Hi again another query I am getting a sales invoice for an EC client coming up. They have not had an issue previously so not sure why it is coming up in the pre-payments section on the VAT report with an VAT element. It was not before and should not now either.
Can you help
Hello @Asmaa
While I appreciate the urgency of some of the VAT queries, we will respond to your queries as quick as we can - especially given it’s a bank holiday. I’ve amended your topic title.
There are a few things to consider here. For example, is the invoice marked as reverse charged? Is it showing up in the correct place on the VAT return itself? Is it goods or services?
It’s also worth noting that VAT is a very complex area, so we’re not able to support every scenario. Things such as services from EC suppliers would require a manual adjustment.
Sorry about that and appreciate all your assistance
Ok it a normal invoice and we have invoiced them before, however I noticed that on the prepayments it section on the VAT form that it included a VAT element.
This has not happened before and not sure what has changed !
The way a prepayment works is that a VAT rate is specified at the time of tagging it to the client/suppliers account. If no rate is specified, it’s accounted for at 20% to ensure you’re not underpaying on your VAT.
When it’s assigned to an invoice, it will adjust to suit the invoice settings (e.g. reverse charge, different rate, etc.). So at first, you may see it being accounted for as 20%, but it will adjust.
Of course, you’re welcome to manually adjust your return to account for this correctly in the first instance - as I mentioned above, it’s a bit tricky to handle every possible scenario.
Ok I am still very confused the set up of the client and invoice has not been which is why I am confused changed and a prep-payment for this client did not have a VAT element previously.
I just need to understand why this has happened
I’ll send you a private message and see if I can offer some specific guidance on this for you.
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