Flat rate VAT Balance Sheet Problem

I have a flat rate vat account and entered 1 invoice.

The invoice has VAT of 560. When I use QuickFile Balance Sheet Reporting - it shows me a 2200 Sales Tax Control Account liability of £560 for VAT. However this is the total VAT on the item @20% as opposed to flat rate setup by me @13%.

Can someone please advice and help me (noob)

Thanks in advance.

This is correct, the way flat rate VAT works is that it will always calculate based on the actual VAT rates (not your own Flat Rate percentage). When you file your VAT return, an adjustment is made to the VAT control accounts to net off the difference and move it back into sales.

It is explained briefly here:


Hi Glenn,
Thanks for your message. I understand and have already looked at your link before posting and yes the vat posting section calculates it ok but I am querying that Balance Sheet seems incorrect without the correct vat liability due. Ie it shows vat due as 560 which is 20% of invoice as opposed to vat liability as flat rate vat %.

Can you please advice?

Yes this how it works, it will be corrected on submission of the Flat Rate VAT return. Quite a few systems account for flat rate VAT in the same way so it is not unique to QuickFile.

What should I do if I submit my VAT directly outside quickfile system?