Sale of Asset under VAT FRS

Accounting
1

Hello,

I would be grateful if you could help me with my query.

The VAT FRS applies. Input VAT was reclaimed on the purchase of an asset. The same asset has now been sold and VAT at 20% was added on the sale invoice.

My understanding is that in this case VAT must be paid in full rather than at the reduced rate but the draft VAT return prepared by Quickfile shows the VAT at the reduced rate. I tried to code the sale on Sale of Assets and Motor Vehicles (0050) but neither of them works.

Please, can you let me know what do I need to do, so that full VAT is captured by the VAT return in this particular sale rather that the VAT at the reduced rate?

Thank you.

2

Hi @Oliviu

It may be best to speak with an accountant to make sure that you are accounting for your VAT correctly - once you know how you should be accounting for it then we can help you to reflect this in QuickFile

3

Hello Beth and thank you for your quick reply.

Please see paragraph 15.9 of VAT Notice 733.

4

Have you tried adding an adjustment to the vat return to include the additional vat? Unsure if adjustments still work but that might be an option.

5

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