Flat rate VAT and EU supply of services

Accounting
1

I am registered for Flat Rate VAT, and have supplied services to another EU country. As this is a supply of services with a place of supply outside the UK, my read of the HMRC Flat Rate guidance is that this turnover can be excluded from the Flat Rate turnover for the VAT return.

However, although the invoice shows a VAT reversal, the total turnover still includes the invoice value. Any idea how I can avoid this? The way Quickfile does it would be correct for supply of goods, I think.

Thanks for any advice.

3

You can mark any sales invoices as out of scope using the following method.

Make an invoice as out of scope for VAT

If required you can also manually adjust boxes directly on the VAT return before submitting.

4

Many thanks for the speedy response!. Rather what I suspected. I assume I cannot manually adjust the QF VAT calculation and will have to enter a JV to adjust the accounting entries? I do the HMRC return manually anyway.

Cheers, Nick

5

Sorry - didn’t read the second reply!! Seems I’m good to go.

Great system - thanks!

Nick

1 Like