Hi I have searched for an answer to my specific question but can’t find one apologies if this a repeat question.
I am newly registered for VAT on the Flat Rate scheme and intend to use cash accounting.
My Quickfile company settings are set this way.
I have a client in Helsinki for whom I provide consultancy services and as such have set them up as registered in another EU country for VAT.
When creating a sales invoice for them I tick the Reverse Charge box and the invoice correctly displays the reversed charges.
Having recorded a payment against the invoice I decided to check the VAT return. It shows 13% (my flat rate) output tax in box 1, Total VAT Due of the same amount in box 3, ZERO in Input Tax box 4 and therefore 13% to be paid to HMRC in box 5.
I obviously don’t wish to pay unnecessary VAT so I played around with the settings.
I can tick Out of Scope on the invoice. However, this prevents the Turnover appearing in box 6 and the EC Sale appearing in box 8.
Eventually, I changed the VAT settings and unchecked the FRS tick box. This then produces a VAT return showing correct turnover and EC sales. With zero input & Output tax just as I would expect.
Does this mean that Quickfile does not support FRS and EC Sales?
Thanks in advance.