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VAT Flat Rate Calculations

#1

I’m new to QF and I am filing my first VAT return.

I am on the flat rate with some of my sales non vatable. However, QF is calculating the flat rate on ALL of my sales and not just the vatable ones. Is this correct and how do I get QF to calculate the VAT on just the vatable sales?

TIA!

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#2

Have you ticked Out Of Scope option on invoices?

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#3

Thank you. I can’t see that option. Where is it located?

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#4

bottom of the invoices

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#5

Hi @angelo

Just to expand on @FaradayKeynes’s post, you will need to enable this at a client level first.

If you edit your client, you’ll see an option to change their VAT type (either no special treatment, EC registered or out of scope / exempt).
image

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#6

Thank you. What if part of their invoice is vatable at 20% and the other goods are exempt?

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#7

In this case you would have to separate it out into 2 invoices.

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#8

Thank you! Managed to sort that out now.

I overpaid VAT in the last quarter and my accountant has advised to adjust the sales in this quarter so the new VAT amount will reflect the overpaid VAT. How do I go about doing this?

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#9

Hi,

When you prepare your VAT return there is a little arrow next to the generated figure, if you click on this it will bring up the box where you can add your adjustments and notes relating to them :slight_smile:

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#10

Thank you Beth! Nice and easy solution :grinning:

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#11

Note that any manual VAT return adjustments that affect the final VAT liability you have to pay will leave a contra entry in the “manual adjustments” nominal code on your balance sheet, and you’ll need to create another journal to move that to where it actually belongs (probably either general sales or flat rate adjustment, your accountant should be able to tell you which).

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#12

Thanks Ian for making me aware of that.

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