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New to Quick file- how to log VAT based on profit of sale


I log a purchase invoice for a purchase of car not including vat. When the car is sold, I issue a sales invoice. My stock bock shows the profit which the vat is based on.
How do I log this?


Hi @AnetteLake

Would this be the second hand margin scheme? If so, you would need to enter the data over 2 lines - one with VAT at 0%, and one with VAT at 20%. There’s more information on this here: VAT Second Hand Margin Scheme

If it’s something different, please let me know and we’ll try and help further :slight_smile:


This will record the amounts correctly for the VAT return but you would have to draw up a separate document to give to the customer as their receipt, as I understand in the margin scheme you’re not allowed to itemise any VAT on the documentation that you give to the customer.


Thanks, I will try this. Just one more thing, the purchase date of the car might be December but the sale is in January, how would this work on the sales invoice?


You’d record the sales invoice in QuickFile as the date of the sale, as that’s what decides the quarter when you have to account for VAT on the margin.

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