I am trying to do my first VAT return and many of my EU sales do not appear on my VAT return at all in any box. I only have one EU customer and it is set to VAT registered in the EU and reverse charge for VAT. It is cash accounting and the sales are linked to bank receipts in the VAT quarter. It all looks ok when listed by client. I have tried resaving the invoices but nothing helps, it is doing my head in.
On closer inspection, it is disregarding the Invoices due to the invoice dates being outside the VAT quarter notwithstanding that the linked cash receipts are within the VAT quarter and the VAT is calculated on the cash basis. How do I fix this, can it do cash basis properly or not?
Are your EC sales goods or services?
Even if you are on cash accounting for your UK VAT, box 8 for EC sales of goods (and 9 for the corresponding acquisitions) is always done on accruals basis.
I believe sales of services can still be done on cash basis but QuickFile doesn’t have any special support for EC supplies of services - the so called “reverse charge” tickbox treats it as a dispatch of goods. I guess you could just leave the invoice as a normal zero rated sale and include a statement in the notes section that the purchaser must account for their own VAT using the reverse charge mechanism.
(Usual disclaimer - I’m not an accountant, ask yours if you want to be sure)
Thanks Ian, that explains it. Yes it is for goods and it should be accruals - I am not an accountant either
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