VAT Partially Exempt Business - VAT Return

I’m taking over the accounts of a partially VAT exempt business. I’ll be using the standard method for calculating this, but how do I handle this within Quickfile? Any ideas? It doesn’t look like Quickfile natively handles this.

Hi @paul_gibbons

If it’s just the case of marking selected invoices as “Exempt”, then this is certainly possible :slight_smile:

You’ll see an option to edit the VAT applied to the invoice. Clicking on “Edit” will reveal these options for you to select:

Sadly not. It’s necessary to record costs that are associated with VATable sales, those that are exempt and those that fall into the “Residual” area that later need to be apportioned. I’ve seen these options on other software, but am trying to stick to Quickfile, which I use for other accounts I work on.

Hi @paul_gibbons

I’ve just clarified this with a colleague. Unfortunately, it’s not supported by QuickFile at this time. You would need to manually adjust the VAT return.

Thanks Matthew. Not possible via QF atm then as it’s not possible to give the transactions defining codes that would make a breakdown possible. The needs of businesses who are partially VAT exempt is something that needs to be looked at.

You could use project tags to label purchases that relate to exempt sales and to VATable sales, then subtract those two from the total purchases in the quarter to get the residuals. The limitation here is that project tags apply to a whole purchase rather than per line so it’s tricky if you have one purchase that splits across the three categories.

Hi Ian. Thanks for your response. I gree that project tags are the best way to get past this issue. Having said that, it is something QF should look at. Adding in “VAT Codes” that then report on the VAT detail sheet would make this easier. Partial exemption may not be the most common of VAT status, it is significant enough so that any modern accounting software should allow for it, especially now that MTD is pretty much the norm. Luckily the ability to adjust VAT returns does at least mean that filing the return from QF is possible.

Thanks for taking the time to look at this. A “work-around” is ok, but only for the moment.

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