I’m curious to know how an invoice can have both 19% uk vat which isn’t a uk rate and be out of scope of UK vat? If its not uk vat I don’t think you would record it in quick file
My customers are in Germany / EU so I want to be able to issue invoices at 19% VAT (their rate). This is why I am ticking the Out of Scope for UK VAT because I don’t want it to be included in my UK VAT return - it’s handled in my German VAT return.
I am about to have the same problem as @joris as I am becoming VAT register next month.
And I think I understand what @ian_roberts is explaining and suggesting.
But the topic is closed and it is not clear what the right solution is to deal with that on Quickfile.
Also, maybe something has changed since jul 2021.
So my question is:
What is the best method to manage the VAT for other EU country within quickfile?
I know it needs to be done manually somehow, but I would like to know what others are doing and if there is any suggestion on how to do this.
Supplies of services where the “place of supply” is not the UK are technically considered “outside the scope of UK VAT”, but you’re still supposed to include the net value in box 6 on your VAT return. @Glenn can confirm for definite but I believe that ticking the “out of scope” box in QuickFile will exclude the invoice from box 6, therefore the correct course of action in this case would be just to treat it as zero rated by selecting “no VAT”.
Then I should not mark it as out of scope so it appears on the box 6?
Probably getting a little confused on this now and may need to read this again tomorrow.
ORIGINAL POST RESOLUTION:
I managed to solve this problem with the help of QF team by copying the invoice - was able to set the correct VAT rate / out of scope setting on the copied invoice.
@expertoswp yes we’re having the same issue - @ian_roberts is setting EU sales invoices to 0% VAT like you suggested above still the best course of action? While this may work for the UK VAT return, the information on the invoice would be incorrect as the customer is paying VAT, just not in the UK (in our case it would be their EU country).
Hi Bazz,
So far when you need to setup a EU invoice with VAT, quickfile does not have an option for this.
So what we are going to do until they fix this is:
mark the invoice and the client as out of scope.
that allows us to put the right % on the invoice (when the country is not UK).
And then we need to get the amounts for those invoices and add them to the box number 6
That last step needs to be done manually on each VAT return with all the amounts (on GBP) for all the clients that are marked as “out of scope” and has EU VAT.
That last step needs to be done manually on each VAT return with all the amounts (on GBP) for all the clients that are marked as “out of scope” and has EU VAT.
I have outlined a way to get the figures for the adjustment below
When entering OOS invoices add a project tag (OOS- recommended)
You can then use Reports > Projects > select OOS project > to get the total net to add to box 6
Unfortunately, I’m still not able to replicate this. Is it possible you have any custom scripts on your account that may be preventing this? Do you see any error messages at all? Are you able to produce a short clip showing the issue (without including any sensitive data)?
In order to use non-standard VAT rates you need to first configure them in your QuickFile settings in order to add them to the drop down list of VAT rate options.
The options are under “account settings” → “advanced settings”, there’s separate options for additional sales and purchase VAT rates, and if you need several different rates for each one you can enter them all separated by commas.
