When creating a sales or purchase invoice in QuickFile you will see a number of additional VAT options in the invoice editor. These options can be used to control the boxes within which the NET and VAT totals are reported in your VAT return.
In this guide we explain when to use each of the VAT options and the effect that each will have on the VAT return.
VAT on sales
The examples provided are below for standard VAT accounting and are based on a £1000 sales invoice plus VAT (where applicable).
| Option | When to use | VAT Return Boxes |
|---|---|---|
| VAT Exempt | Applicable for VAT exempt sales, e.g. sporting activities, certain medical treatments, financial services etc. You can find a more comprehensive list on the following HMRC guide. | Box 6: 1,000 |
| Out of Scope | Use this option when you want to completely exclude the invoice from your VAT return. | _____N.A_____ |
| CIS reverse charge | Use this option if you are a CIS sub contractor and you are invoicing a CIS contractor that will be subject to the CIS domestic reverse charge. | Box 6: 1,000 |
| EU supply of goods | Use this option if you are based in Northern Ireland and are making a supply of goods to a company based in the EU under the Northern Ireland Protocol. |
Box 6: 1,000 Box 8: 1,000 |
| EU supply of services | Use this option if you are based in Northern Ireland and are making a supply of services to a company based in the EU. Find out more. | Box 6: 1,000 |
VAT on purchases
The examples provided are below for standard VAT accounting and are based on a £1000 purchase invoice plus VAT (where applicable).
| Option | When to use | VAT Return Boxes |
|---|---|---|
| VAT Exempt | Applicable for VAT exempt purchases, e.g. some postal services, sporting activities, certain medical treatments, financial services etc. You can find a more comprehensive list on the following HMRC guide. | Box 7: 1,000 |
| Out of Scope | Use this option when you want to completely exclude the purchase from your VAT return. | _____N.A_____ |
| Reverse charge on services | Use this option if you have received a service from an overseas supplier and have been asked to self account for VAT. |
Box 1: 200 Box 4: 200 Box 6: 1,000 Box 7: 1,000 |
| CIS reverse charge | Use this option if you are a CIS contractor and you have received an invoice exlcuding VAT from a CIS sub contractor. The VAT element is then declared as an input on your VAT return and then reversed off as an output under the domestic reverse charge mechanism. |
Box 1: 200 Box 4: 200 Box 7: 1,000 |
| EU acquisition of goods | Use this option if you are based in Northern Ireland and have acquired goods from a company based in the EU under the Northern Ireland Protocol. |
Box 2: 200 Box 4: 200 Box 7: 1,000 Box 9: 1,000 |
| Postponed VAT accounting | Use this option when importing goods under the Postponed VAT Accounting system. Please refer to the HMRC postponed accounting guide for more information. |
Box 1: 200 Box 4: 200 Box 7: 1,000 |