Hello, I am trying to reconcile the year’s VAT returns with the annual accounts turnover, which is a standard reconciliation for accountants. The year end and VAT end is the same (we are on annual accounting).
The first year accrual output VAT accords with the annual turnover. So it is reconciled.
However the second year accrual output VAT is less than the corresponding annual turnover because of some transactions which were outside the scope (services to USA based companies).
Is it possible to run a report which shows all excluded transactions? Would you have any suggestions for this issue please?
If you run a VAT return (Reports > VAT Returns) but don’t submit it, you are giving an option to download the calculations at the bottom.
This will give you a .CSV file with all invoices included and show you a breakdown on the invoices and purchases that were used to calculate the figure.
Kind of. The problem is that the VAT returns as calculated include a number of adjustments that need to be made manually. For example, it is wrong to not include in Box 6 the value of selling services to customers outside EU and UK (unless you are on the flat rate scheme) and the system does not recognise this. As a solution I zero-rate them instead. But I also have problems with boxes 8 and 9 as they should not include any values when only dealing with services.
I have noticed the discussion on other topics about non-separation of goods and services, and the confusion about whether should be zero rated or not included in box 6 at all. In short, I do not think the reverse charge and VAT rules for outside of scope are applied/reflected correctly in the QF system at the moment.
If this could be looked into more detail, it’d make more sense to one day use QF to file VAT returns without risking a VAT inspection.
PS: I have passed a VAT inspection successfully last year confirming that I am applying the rules correctly (but as I said I do make many adjustments and not use QF to file)
We are aware that there are cases where the statistic boxes will need to be manually adjusted, particularly with EC acquisitions, which are defaulted to goods not services. We will be looking at this hopefully in Autumn and will keep you updated.