I am processing a new purchase invoice with the following info:
Total (excl. VAT): € 69.60
VAT: € 13.92
Total: € 83.52
With my company being non VAT registered, in the New Purchase screen there is no option to add any VAT amount, just a total amount including VAT… i.e. € 83.52.
All fine so far.
What confuses me is that the purchase invoice in QF still shows VAT, albeit with a VAT rate of 0% and a 0.00 VAT amount.
This is how it appears in the editing view:
This is how it appears in the quick view (or whatever it’s called):
Is that strictly correct? Wouldn’t it be better just to hide the VAT rows/columns in these views completely, and just show a Total amount of € 83.52, rather than show a VAT of 0.00 and a VAT Rate of 0.00% ?
Have you ticked the VAT box in your account settings (click Account Settings>>Company Settings)? If so, untick box and click Save at the bottom of the page
Yes, I have:
Presumably that’s why it doesn’t let me put in any VAT in the New Purchase screen… I did play around a bit with “VAT registered” enabled, and I could see that it was possible to enter VAT. But “VAT registered” is definitely disabled now… I just wouldn’t expect to see any reference to VAT at all on the purchase invoice, would you?
Are you vat registered or not?
If so what’s the problem?
If not, then you enter figures gross and not seperate from vat.
If the issue is simply not wanting to see the columns then you may be able to add a css script if you’re a power user to remove those columns, I’m not sure @ian_roberts may know.
Not VAT registered. The problem is probably more presentational than fundamental. It just make it look like this supplier invoice has zero VAT applied or that VAT is zero rated. Which isn’t the case. The supplier invoice clearly itemises a chunk of VAT and states a VAT rate of 20%. Shouldn’t the VAT rows/columns in QF just be hidden (without having to code a CSS script) if the company is not VAT registered, rather than given the impression that the supplier invoice has no VAT added or is zero rated?
It would make more sense in this case but it couldn’t be implemented as a simple if “vat registered” not ticked then hide those columns. If my business was previously vat registered but turnover dropped and I chose to de-register, then I’d still want to see the VAT columns on entries that date from when I was registered even if their VAT amount is zero. So whether or not to hide the columns would have to be a property of each purchase individually, not a global per-account setting.
Just think of the VAT column on purchases not as the amount of vat you paid on that purchase, but rather the amount of vat that you are eligible to reclaim. That amount is always zero if you’re not vat registered.
Thanks @ian_roberts… that’s a nice explanation to help me make sense of what I’m seeing. I know that QF is doing it correctly in the sense that we end up paying the right amount of tax and claiming the right amount of VAT (or not) which is ultimately what HMRC will care about, it’s just that the presentation of the information seemed wrong to me… probably because the “view purchase” page in particular makes it look like an actual purchase invoice from the supplier, with VAT numbers that don’t match the actual purchase invoice. But I’m happy to think of it more in terms what what I’m eligible to reclaim (nothing), as you suggest, though I would still prefer to see a VAT amount of zero and a VAT rate of 20% (rather than 0%) because this purchase is not zero rated for VAT. Anyway, maybe I just need to stop overthinking things
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