Hi guys! As you may know, MTD will be mandatory for all VAT registered businesses from April 2022. My next VAT return will cover July 2021 - June 2022, therefore I have been told that I should start using the MTD method of accounting already so that my next return has all the necessary “digital links” for the whole period.
I import goods from third countries and sell them b2c/b2b on UK Amazon (with UK VAT registration, Flat Rate 7.5% scheme) or b2c/b2b on EU Amazon (with German VAT registration, EU OSS scheme, so all Outside of Scope). I also rarely sell digital products/services on Etsy and Fiverr (which are b2b digital sales to third countries, so also Outside of Scope).
Is the following approach to MTD with Quickfile correct for my case?
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Purchases: My business is VAT registered with Flat Rate, this means that I am not asked to keep a digital record of my expenses unless they are reverse charge purchases (VAT Notice 700/22, par. 4.3.5 and par. 4.6) or capital expenditure goods (which I never have).
→ All purchases invoices and payments will be entered manually, with pdf invoice attached -
Sales: I am required to provide a digital link for all the sales made on online marketplaces from the UK unless the marketplace itself is responsible for VAT (VAT Notice 700/22, par. 4.3.2 and 4.3.2.1 + Guidance VAT rules for supplies of digital services to consumers).
→ The invoices and payments of any sale made outside online marketplaces and any sale that is Outside the Scope of VAT (digital sale on online marketplace or sales of goods in EU under OSS or IOSS) will be entered manually.
→ The invoices and payments of any sale of goods made on online marketplaces to UK customers will be entered with a “digital link”, which will be the CSV report downloaded from the marketplace website.
Thanks for your patience in reading this long post (my first attempt was even longer but had no answer and it will close in just 2 days, lol), and for the grammar errors (English is not my first language), hope you can help me find the best way to use this software with MTD.