French TVA

[Malcolm_Finnie]

Hello,

We’re a UK registered business with a French branch. Our UK business is not VAT registered and we therefore cannot treat VAT on our UK transactions (why would we want to?). However, in France we MUST include the VAT (TVA in French) when uploading our transactions or we will end up with a sizeable tax bill.

Can anyone suggest how we could do this?

Thanks in advance.

Kind regards,
Malcolm

[QFMathew]

Hi @Malcolm_Finnie

You can enter your own custom (non-UK) VAT rates into QuickFile in Account Settings >> Advanced Features. You can then raise invoices applying those rates and the software will accumulate your input and output VAT under the following nominal ledgers.

2200 - Sales Tax Control Account
2201 - Purchase Tax Control Account

You can then use the above running totals to prepare your French VAT return.

I hope that helps!

[Malcolm_Finnie]

Hi,

Thank you for that - I’ve activated the custom VAT amounts and it works well when creating purchases from the purchases tab.

However it’s still tricky to use when tagging bank transactions. Normally to save time I upload my bank statement then go through the bank account in Quick File, creating purchases as I tag the transactions. This avoids me having to type in all the transaction details because it already has the info from the bank statement. When I create the purchase from the bank account ‘tag me’ button I only get the option to use one value of VAT for the transaction, whereas in reality my French transactions all use multiple VAT values for different goods.

Is there any way of inputting multiple VAT rates per transaction from bank tagging or am I going to have to manually enter every purchase and mark it as paid?

Kind regards
Malcolm

[Malcolm_Finnie]

Hi,

In addition to the above, even if I use the purchases tab to create the French purchase (thereby enabling the multiple VAT rates that I need), when I go to tag the transaction from the bank account it doesn’t find the corresponding purchase because my bank account is in GBP whereas the purchase is in Euros. Please help!

Kind regards,
Malcolm

[QFMathew]

@Malcolm_Finnie

When I create the purchase from the bank account ‘tag me’ button I only get the option to use one value of VAT for the transaction, whereas in reality my French transactions all use multiple VAT values for different goods.

Is there any way of inputting multiple VAT rates per transaction from bank tagging or am I going to have to manually enter every purchase and mark it as paid?

Unfortunately you can only enter one VAT rate from the bank tagging area. It’s designed to be a quick way to create invoices. Invoices requiring multiple VAT rates or multiple lines would need to be entered manually.

@Malcolm_Finnie

when I go to tag the transaction from the bank account it doesn’t find the corresponding purchase because my bank account is in GBP whereas the purchase is in Euros.

For foreign currency invoices, they need to be tagged from the invoice itself so we can record both the GBP and non-GBP (in your case EUR) values. The base currency for QuickFile is GBP, so behind the scenes everything has a corresponding GBP value for calculations on reports (like profit and loss for example)

[Malcolm_Finnie]

Ok, thank you for your help and speedy responses.