Hi I’ve entered several puchase payments and they do not show the VAT breakdown and it looks like I cannot reclaim the VAT also. I’m on a 15% flat rate VAT scheme is this somehow affecting it? I should still be able to see supplier VAT / total etc?
If you’re on the flat rate scheme, you can’t actually claim VAT back, except for certain capital expenditure (based on https://www.gov.uk/vat-flat-rate-scheme/overview)
I’m not VAT registered myself, but I’d assume this would be why QuickFile doesn’t let you enter it for your purchases.
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Hmmm whilst I understand where you’re coming from, the VAT is marked on the invoice I get from the supplier so it would make sense it would show on the purchase note as well.
Thanks.
The VAT is displayed because your supplier is VAT registered. If you are not VAT registered, or not able to claim it back as you are on flat rate, then it should not be itemised or shown in your accounts. This applies to sales and purchases in general and is standard practice.
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The above from @Lurch is not quite right as it does not apply to VAT sales invoices which must still be issued by VAT registered customers. The rate of VAT on these invoices should be the appropriate rate of VAT and not the Flat rate percentage.
What @Lurch is referring to, is if you are on the flat rate scheme or not VAT registered, then any purchase invoice would be entered as the gross value rather than net + VAT.
So, if you are charged £10.00 + £2.00 VAT, you would just record it as £12.00 because the VAT has no importance in terms of accounting, seems you can’t claim it back
However, if you are on the flat rate scheme, you would still charge VAT to all your customers where appropriate (e.g. VAT-able items)
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Sorted, thanks for all your advice, I now understand.
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