Problem on box 6 of VAT

Hello.I think there is an error to program ? (or i didnt understand very well).
I make sales to overseas companies.These are exports zero rated VAT.
So when i create invoice, Quickfile prompts me on explanation here VAT rates explained to mark it as “Out of scope” .
But when i mark it as “Out of scope” the amount of invoice is not recorded to box 6 of VAT.
But according explanation of VAT here , the amount of “out of scope invoice” it should be recorded on box 6.Please read :
"Box 6 total value of sales and all other outputs excluding any VAT
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 [Place of supply of services (VAT Notice 741A) "
So please can you fix it ?Or if is my mistake please explain me what i miss.Thank you :slight_smile:

The Outside of Scope flag in QuickFile is used as a means to completely exclude a sale from the VAT return. There are certain factors that would require items to be excluded from box 6, therefore this flag is reserved for those situations.

If you mark an invoice as exempt or just zero rate it then it will be included in box 6, but will not affect the tax calculation.

As i understand from explanation on government link only those situations can be excluded from box 6
"But, you do not include in box 6 any of the following:

money you’ve personally put into the business
loans, dividends and gifts of money
insurance claims
Stock Exchange dealings (unless you’re a financial institution)"

I dont think can be issued any invoice about these (i am not sure however).
Seems anyway, that all sales, (mean all invoices) even they are zero VAT , can not be excluded from 6 box and must be recorded even they are out of VAT tax.
This is why i mention.
However is not a problem for me now since it is cleared form you.I just say it is easy for someone to be confused when reading “out of scope” on button while out of scope on paragraph 3.7 of government link explained as “recorded balance”.

There has been some debate in the past over what can be excluded from box 6. We are planning to review all VAT procedures next year once we gain some clarity on where we’re heading with Brexit (which will affect VAT policy).

In theory we are able to change the default behaviour for the OOS flag, but then that would lead to a continuity issue and also we’d still need to reserve a control for excluding some items, that would therefore require an additional 3rd option.

We will certainly let you know if we make any changes here. In the mean time if you just zero rate the invoice value will report in box 6.

Thank you very much.
Also while we speak for VAT may i ask you another question.
According here VAT rates explained for purchases from EU you say to apply EC reverse charge (tax shift) on record of purchase.
My sales are from EU company registered to VAT.
Their invoices does not contain any VAT amount.
So you confirm is better on my records to appear VAT amounts (even they not appear on invoice) and then i reverse it back ?
By this way, all VAT amounts will appear on VAT return form on box 3.
Seems to me ok but I just ask you to be sure because my old accountant didnt appear any VAT amounts for these invoices on box 3.
So you think is better to proceed with your way and to show them on box 3 ?

In regards to how you should be accounting for the VAT from a EU company, I’m not able to advise on individual accounting requirements unfortunately, so it may be best to run it past your accountant to be sure.

Generally speaking however, if reverse charge has taken place, it is stated on the invoice itself. In which case, reverse charge is done where you charge yourself the same rate you normally would, as if you were both the supplier and the client.

Thank you very much ! :slight_smile:

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