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


#1

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?


#2

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:


#3

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.


#4

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?


#5

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.


closed #6

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