We pay into our parcel2go account at the beginning of each month but they treat this payment somehow as out of scope on there invoice but only for a small amount of Vat and I am struggling how to account for it.
Example Invoice totals
Net £174.71
OOS £0.67
Vat £34.28
Total £209.66
As you can see they are taking the £0.67 from the amount of Vat that should be paid on the £174.71. Struggling to find a way on entering in Quickfile.
That’s a really weird way to lay it out, but I think what they’re trying to express is this (numbers aren’t exactly 20% because of differences when rounding to 2 decimal places)
| Type | net | 20% | Total |
|---|---|---|---|
| Out of scope | 3.35 (= 0.67 * 5) | 0.67 (not VAT) | 4.02 |
| VAT-able | 171.36 (= 174.71 - 3.35) | 34.28 (this is VAT) | 205.64 |
| Total | 209.66 |
“OOS” + “Vat” is 20% of the “Net” because not all of that net total attracts VAT.
You can probably just enter it in QuickFile by setting the VAT rate to 20%, putting the net as 174.71+0.67 = 175.38, then edit the VAT column down to 34.28. The OOS part will technically be recorded as zero rated rather than OOS but I don’t believe it makes a difference. Per the official guidance box 7 on your VAT return is the “total value of purchases and all other inputs excluding any VAT”, and you don’t exclude all OOS items from this, only those that are “outside the scope of VAT because [they are] not consideration for a supply” (reference, my italics)
thanks for your reply but I can not find how to edit the vat down
Which route are you using to enter the purchase, are you trying to create it from the receipt hub, during the process of bank transaction tagging, or directly in the new purchase editor? I know the VAT column is supposed to be editable in the purchase editor and the VAT box is editable in the receipt hub, I’m unsure about bank tagging as I never create my purchases that way.
It is in the purchase editor, I used to be able to change the vat but if I try to do it now it changes the total
Yes, you’d have to set the net first (to the sum of the “Net” and “OOS” values) and then the VAT second (to the “VAT” value). That should leave you with the right overall total.
Thanks for you help but for some reason I will not let me alter the vat value without it altering the total
It should alter the total. When you first enter the Net+OOS in the net box and set the VAT rate to 20% then the line total should at that point be slightly too high (as it’s calculated 20% VAT on the out of scope bit as well), when you edit the VAT column to match the “VAT” on the invoice from Parcel2go that should bring the line total down to match the correct invoice total.
If you have ticked the box about entering line totals including VAT then un-tick that and try again.
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