Still trying to get my first MTD VAT report sorted with QF.
We are on cash accounting for VAT. All our sales are services, not goods.
HMRC clearly state in their guidelines:
Enter the value of all your sales, excluding VAT, for the period based on the payments you’ve had, not the invoices issued
However, QF is including invoices issued, but which have not yet been paid, prior to the VAT period end for invoices issued to other EU member states (not UK customers).
If I deduct these invoice amounts from box 6, presumably I then have to make a note to add them back in for the next VAT return. This seems a bit strange and certainly not in the spirit of MTD.
Bank charges are exempt from VAT, however if I mark them as exempt, they don’t appear in box 6 so presumably I should not mark them as exempt, just leave them as 0% VAT? Also, does anyone know if PayPal fees are the same? I know that there is no VAT charged on PayPal fees but are they exempt or After extensive searching I can’t find anything to confirm or refute this. PayPal doesn’t appear to issue invoices for their fees like Stripe does and I can’t even find an address on the PayPal website so no idea if they are charging me from the UK, EU or other country. Their only reference to tax is for the USA.