1.Do we have to include in box 6&7 sales /purchases, which are outside scope due to the supply is outside UK (say a UK customer buys goods from Malaysian company in Malaysia and sells them in Singapore?
according to guidelines: in box 6 needs to be include:
supplies which are outside the scope of UK VAT as described in VAT Notice 741A: place of supply of services
Does this mean that out of scope services are included? what about goods? I have read similar topic in the forum, but couldn’t comprehend if there is a final answer.
Do we have to issue a VAT invoices for this out of scope transactions ( I mean- showing our VAT number, for VAT put 0%?)
Reverse charge -Do we need to reverse charge a service received from overseas supplier (IT support, distance made). I think Yes, in this case what is the procedure- do we issue a self- billing invoice or just put the VAT in output VAT and deduct the same amount (if deductible in input VAT) Box 1 (output VAT),Box 4 (input VAT),Box 6 (value of the deemed supply),Box 7 (purchase value)
Derivatives. I am confused between different notes: Notice 701/9: 701/49
if the company is company that purchase and sells oil and hedges using a clearing house- I assume they are VAT exempt. Do we include in VAT return and what exactly we include- they are unrealised, realised gains, or just the total value of sales, purchase. but there are no vat invoice produced by clearing house…
The guidance around VAT treatment can depend on a number of detailed factors, so I would always suggest you carefully refer to the HMRC guidance and/or seek professional advice from an accountant. Unfortunately VAT rules can be complex so we can’t provide a categoric answer here. I will however try to guide you on a couple of the points you raised:
By default QuickFile will completely exclude any sales or purchase invoices marked as Out of Scope for VAT purposes from your VAT return. HMRC state the following in relation to box 6 and Out of Scope supplies (source):
Show the total value of all your business sales and other specific outputs but leave out any VAT. Some examples are:… supplies which are outside the scope of UK VAT as described in VAT Notice 741A: place of supply of services
Are they based in the EEA and have they taken your VAT registrations number and exempted the VAT? Does the invoice they have issued clearly mark that a reverse charge has been made? It very much depends on the invoice your supplier has issued.
I’m afraid I can’t help you on that one, it would be advisable to seek advice from an accountant in regards to the VAT situation with derivatives.