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Outside the scope of VAT sales and purchases

I’ve just become VAT registered in Germany and now that the UK is out of the EU I understand that all purchases and sales in Germany (that remain in Germany) are outside the scope of VAT? All records in my books should not include any VAT and be marked “OUTSIDE THE SCOPE OF VAT”? Am I understanding this correctly?

Hi @Alexandra_Wrega

It may be best for you to seek advice from an accountant to make sure that you are recording it correctly.

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Out of Scope VAT is used for any transactions that do not need to be included on the VAT return, i.e. PAYE, TAX, Pension etc. HMRC code T9 is generally used for out of scope transactions, but this T9 option does not seem to be available on quickfile. transactions will not be shown on the vat report if labelled out of scope.

Zero Vat code is used for all EU/international sales and purchases which do not have VAT. These will be shown correctly on the Vat return.

Generally speaking, HMRC code T0 = zero rated goods to and from EU countries. T2 for NON vatable goods and services and international. T4 used to be the code for all EU transactions, pre brexit, but this has now been removed and T0 or zero code is used. I do not think quickfile recognises the HMRC T codes as such.

I have been looking at the client data base and cannot see an option to mark the account “out of scope”. Can anyone advise where this option is please.

Hope this information is of help and hope someone can also help me.

Many thanks

They are not hmrc codes. They are sage codes hmrc have never used T codes to describe vat.

When you create your invoice I believe there is a edit link which when clicked, gives you the option to select out of scope.

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When creating/editing an invoice under the Additional VAT options you can select out of scope:

As @Paul_Courtier mentioned the T codes that you mention are what you’d use in Sage and not HMRC specific.

Hope this helps

Ah, apologies on that, yes they are sage codes, which are trfd to hmrc vat report, and accepted by hmrc and online submissions…

Definitely cannot find the link for out of scope vat, but will certainly look at it again

No all the T code does is allocate the correct percentage of vat to the correct boxes in the vat return. The codes do not get sent to hmrc, hmrc accept the figures only.

Yes I agree with you paul. Codes are used to identify relevant percentages…However, I still cannot find the out of scope setting on quick file, which was the original query, think I need to speak to quick file. Thanks. Have a good day.


If you see my post above it explains how to get the ‘out of scopte’ option for your VAT on an invoice:

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