I’ll shortly be submitting another VAT return. My query relates to a supplier who is charging VAT at 7%. The supply relates to a membership fee / yearly subscription. I’ve tried to enter 7% when tagging the charge but the system won’t let me enter 7%, only 5%, 20% or zero VAT.
What is the best course of action, can I make the adjustment once the VAT return figures have been produced and before I submit?
Hi @EWP
Unless I’m mistaken, this seems like a non-UK VAT rate?
There’s some more information on handling this, here: Sent VAT Invoice at 7.5%
What country is the supplier based in? 7% is not a UK VAT rate so it’s not something you can reclaim, but if it’s VAT from somewhere else in the EU and the supplier knows you’re VAT registered in the UK then they shouldn’t have charged it to you in the first place.
Hi Matthew
The invoice has a GB VAT number and company is based in UK. The explanation for 7% VAT is ’ VAT rate based on 65% of value of subscription being in respect of zero-rated printed matter’. Are you able to advise further?
Thanks.
In that case I’d record it as two lines on the purchase, one for 65% of the net at “no VAT” and the other for 35% of the net at 20% VAT - adjust the actual VAT amount to match what it says on the invoice. The important thing is that the net total and VAT total you record in QuickFile matches what it says on the VAT invoice from the supplier, exactly how you represent it in QuickFile is not important as long as the supplier’s invoice backs it up.
I haven’t created an invoice for this purchase as yet, would you advise creating two invoices, i.e. one accounting for 65% of cost at nil VAT and the other for 35% of the net cost at 20 VAT?
Just one invoice, with two lines 
You can have more than one line on the same purchase, I do this all the time when buying stock at mixed VAT rates for my shop.
The supplier shouldn’t be amalgamating supplies at different VAT rates - they should show the two rates on separate lines on their invoices as required by HMRC. As stated above, you then enter one line for each VAT rate.
Indeed, it may be that the receipt they’ve given you doesn’t actually meet the requirements to be a valid VAT invoice, and you would be within your rights to go back to them and ask for a proper one.
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I too have the same questions regarding the vat adjustments.I want to include with it that for degistering for VAT,I have gone ahead and accessed my agent login with HMRC to do this following, I have clicked on ‘deregister for VAT’ and got this following message on my screen that:
“Your client has signed up for Making Tax Digital for VAT so you cannot submit their returns using VAT online services”.
However, in order to submit the VAT returns for your client under Making Tax Digital you’ll require the following:
1.An agent services account - this is different to your HMRC online services for agents account.
- Secondly,the software that’s compatible with Making Tax Digital for VAT that can link to your client’s digital records
request to check the step by step for the guidance.
Then go ahead and sign in by using your agent services account if you want to:
(a)Set up, cancel or amend a direct debit from bank.
(b)Make payments by bank transfer, debit or corporate credit card
©tell HMRC about a change of circumstances
For a detailed analysis you can check the following national debtline