Vat exemption

[Pippin]

I am using quickfile, I sell on a website and have an online web payments. The web payments are sent in a block for a day, some of which (a percentage of full amount) were sent to outside the european community so are VAT exempt.
How can you seperate one payment some to be VAT due and some VAT exempt?
The card company cannot seperate the payment to UK and ROW. I do hold a sales ledger showing w the total of VAT exempt sales.

[Lurch]

Enter multiple lines on the sales invoice.

[Pippin]

How the bank statement has just one payment in and it will be mixed UK and rest of the World

[Lurch]

That payment is tagged to the invoice, and the invoice breaks down the VAT etc.

Have you read the guides on using Quickfile in the knowledge base? It covers most use cases.

[Pippin]

I looked and the helpfile says a payment can be out of scope for vat or vat due. Can’t see anything on splilting VAT and non vat

[Lurch]

Create your first invoice

Introduction Creating your first invoice in QuickFile is simple. When you create a new invoice you can grant access to a fully branded control panel where your client can view, download, and pay their outstanding invoices. You can start creating a new invoice by clicking on the plus icon in the top right hand corner of the dashboard and selecting “Create new invoice”. [image] Add a new client Once the new invoice editor screen has loaded you can start by selecting a client to whom you woul…

[ian_roberts]

Are you sure these sales are actually exempt as opposed to just zero rated? What type of goods/services are you selling?

[Pippin]

These are sales to Outside Europe Union like USA or Australia and they don’t have vat charged. So the payment in shouldn’t be vatable.
My problem is the card company send one days money in one payment so the amount is mixed. I don’t have the exact time the order was placed and therefore will not know which day each individual foreign goes into.
It is getting to point it would be impossible to deal with each as individual payment and maybe 50 transactions a day trying to assign each foreign payment to the correct day is bordering impossible

[ian_roberts]

I ask again, what are you selling? It makes a difference because sales of goods outside the EU are zero rated but sales of services are out of scope. Neither is exempt as far as I can tell.

Ignore the payments from the card company for now - you must have a record somewhere from the website of what sales you’ve made to where on a given day. So you can calculate from that the exact amount of UK sales and non-EU sales you have made that day (note - sales you have made that day, not necessarily ones you have been paid for). You’d create either one or two invoices in QuickFile based on that information

• if you’re selling goods (so your overseas sales are zero rated) then you can do it with one invoice that has two lines, one at 20% VAT for the total value of that day’s UK sales and one at “no VAT” (i.e. zero rated) for the overseas sales. You could also do this using the cash register tool if that’s easier.
• if you’re selling services (so your overseas sales are out of scope) then you’ll have to have two separate invoices, one for the UK sales (at 20% VAT) and one for the overseas ones (no VAT and marked out of scope). They have to be separate invoices because QuickFile only allows the out of scope flag at the level of a whole invoice, you can’t have one invoice which is partly in scope and partly out of scope.

You’d mark the invoice or invoices as paid into a “merchant” account in QuickFile that represents your card provider. When they later send you the funds then that is simply a bank transfer from the merchant account to your current account.

[Pippin]

We are selling products (models) not services.

Langley Models

166 Three Bridges Road

Crawley

Sussex

Rh10 1LE

01293 516329