I have searched and cant find anything relating specifically to managing postponed VAT accounting within QuickFile. There are a few threads relating to processing the VAT only coming in from the freight carrier but nothing in relation to true postponed VAT accounting. For example purchase of services from a Australian supplier stating reverse charge VAT applies - for simplicity say the invoice is for £100. The VAT reporting should be an increase in box 1 of £20 recording the output VAT and a corresponding increase in box 4 of £20 being the input VAT, boxes 6 & 7 should also be increased by £100 to reflect the base costs. The overall effect on the tax return is nil however the VAT still has to be reported.
My question is how should this be dealt with in QuickFile, the supplier invoice can only be recorded at £100 or when you pay it there will be a balance remaining. Even if you were to record the transaction at £100 + VAT then this would only record the input VAT, how do you capture the output VAT for box 1? Is there any functionality within QuickFile for dealing with this or it a manual workaround required?
Logically I would think an additional check box or something is required on the supplier invoice indicating that this is a postponed VAT transaction. Then when the supplier invoice is recorded for the £100 the accounting entries should be as follows:
DR Expense Code (say materials) £100
DR Input VAT £20
CR Creditors £100
CR Output VAT £20
With both the input and output VAT lines being picked up in the VAT return boxes 1 & 4 and the Expense code being picked up and added to both the total sales and total purchases boxes 6 & 7.
Does this functionality exist within QuickFile??
Thanks in advance.