VAT exempt - not showing on MTD Vat return calculation

Support
1

hi guys,
I’m preparing VAT accordingly to the new scheme MTD - and I have 3 bills from PayPal where I ticked VAT exempt box - but there are not showing on MTD Vat return calculation
any reason why?

Thanks
Adrian

2

Because vat exempt are not meant to show on a vat return that’s why.

Zero rated does. Vat exempt does not.

Id suggest familiarising yourself with Vat legislation and double check you are applying the correct vat treatment to your items.

3

thanks Paul. now it’s clear :slight_smile:
I have booked PayPal invoice first time hence wasn’t sure.

4

I believe QuickFile actually gets this wrong - HMRC guidance specifically lists exempt supplies as one if the things that should be included in box 6, but QuickFile excludes them. The workaround is not to tick the exempt box, which means it’ll be treated the same as zero rated and will be included in the box 6 total.

5

Show me the guidance that says exempt items should be included on a vat return?

Zero rated items yes. Vat exempt no.

As you stated box 6 I’ll assume you mean exempt sales…

6

VAT notice 700/12 “How to fill in and submit your VAT return”, I can’t link directly to the heading but it’s section 3.7 “filling in box 6”:

7

As I suspected, youre confusing sales with purchases.

The Op was talking about box 7.

Box 7 the total value of purchases and all other inputs excluding any VAT

But do not include the value of any of the following:

  • wages and salaries
  • PAYE and National Insurance contributions
  • money taken out of the business by you
  • loans, dividends, and gifts of money
  • insurance claims
  • Stock Exchange dealings (unless you’re a financial institution)
  • MOT certificates
  • motor vehicle licence duty
  • local authority rates
  • income that’s outside the scope of VAT because it is not consideration for a supply

In otherwords, exempt expenses

8

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