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VAT and Exempt on same sale invoice


#1

Hi, I sell electric and other items which are both VAT and exempt.
My problem is QF wont allow both be on the same sales invoice.
The same problem applies to purchases like car MOT and parts.
Back in January 2018 I read this is a known problem thats being worked on.
Is there any update on whats happening or is there some work around that i have missed apart from making two separate invoices for vat/zero and Exempt items?


#2

Hi @rectomic

There are no updates here I’m afraid. The cleanest way to do this would be to enter 2 invoices. However, you could also manually adjust the VAT return.

The second option would require you to remember to do it, and leave accurate notes, but should be acceptable.

It’s likely that following Brexit there will be VAT changes - with reverse charging if nothing else. We will review this area after this, so if anything is likely to change, it would be around then.


#3

What exactly does ticking the “exempt” box do in QuickFile? Does it do the partial exemption calculations for you in terms of what proportion of box 3 VAT you can reclaim? If not then what’s the difference between ticking exempt and just saying “no vat” (given that HMRC’s own guidance states that both zero rated and exempt sales should be counted in the box 6 total)?


#4

Im only trying out QF because im being forced to go Digital.
I said electric was exempt is an error. I buy electric with 5% vat but as its business/domestic use i claim back half of 5%. This is adjusted on the QF purchase invoice. I sell electric back @20% and also get paid for generating electric which is zero. I also generate biomass heat which is exempt.
I dont include exempt items in boxes 6 and 7 On my purchases I do make proportional adjustments which my accountant advises.

Ian_roberts yes you are correct about box 6 and 7 is slightly different which say some exempt items should not be included it the totals. I must check with my accountant as I may have been making past mistakes thinking 6 and 7 have same exclusions. I will look at QF later and see if ticking exempt box on purchases and sales are doing the same.
It would be great if QF has a drop down box showing VAT/REDUCED/ZERO and Exempt


#5

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