Flat Rate VAT non vatable amount showing in calc

Accounting
1

I use flat rate VAT accounting. When I run a prelim VAT return for Q2 - everything is correct. But I had one sale to a client based in Grenada with 0 VAT. However this is also being picked up and calculated in the VAT due. Is this correct? or do I need to do some form of adjustment to account for this not being included as a % of gross vatable turnover for the flat rate scheme?

If yes, how do I do this?

I also had to refund a client I accidentally charged for VAT - which is fine and agree it adjusts the vatable turnover as I would have paid this across last period (i.e. it reduces by that amount.

2

Calculations are correct, zero rated turnover would be counted towards FRV %, more details here , What must I include in my flat rate turnover?

1 Like
3

My reading of the guide @FaradayKeynes linked to suggests that zero rated EU supplies of goods need to be included in the turnover figure but supplies of services where the “place of supply” is outside the UK don’t (as they are considered outside the scope of VAT rather than zero-rated).

Was this sale goods or services?

4

Just as a side note, if you want to exclude this item from your Flat Rate return you would need to mark it as “Out of Scope”.

From the client settings enable the following option:

Then on the invoice you will see the following option:

5

@FaradayKeynes, @ian_roberts, @Glenn
Thanks all - yes I supply services so my understanding is the supply, as it’s non EU, is outside the scope of VAT. I’ll use the method to fix that invoice for out of scope. Thanks for all your help.