I sell veg and fruit which are zero rated for vat. I am vat registered so I can claim vat against expenses. When I tag a payment from bank csv it records vat at 20% in my vat return. How so i sort this?
There’s possibly a step missing there somewhere, bank transactions aren’t always directly accounted for in a VAT return, what you tag them to are though. What is it you are tagging these transactions to exactly and what VAT scheme are you on?
I uploaded a bank csv and am tagging both income and expenses to purchases or invoices. My understanding is that this is necessary as a way of reconciling bank sheets ? However though the invoice is 0% rated the tagging process records vat at 20% on sales for the vat report. I am on normal vat where i claim vat on expenses but as i only sell 0% rated food i have no vat on sales.
Hi John,
Where are you seeing that it records 20% VAT on Sales? When you tag a bank posting, it should take the VAT from the purchase/sales invoice that it’s being tagged to?
Hi Beth. When I open a vat report it shows vat on sales but all my invoices show 0% vat as veg is vat free. I have checked my invoices and none show vat. Where is it picking up this vat ? It seemed to me it is linked to my tagging (multiple) payments for a single invoice. ?
Can I just confirm - are all the payments being tagged to invoices? The VAT rate will always be calculated based on the invoices, unless it’s allocated as a pre-payment (to a client rather than to an invoice). In this case, it’s calculated as 20%, but re-calculated when it’s tagged to an invoice with a different rate.
A good way to quickly check, is to download the calculations from the VAT return. This will show you, line by line, the VAT amounts (rather than rates), and where they’ve come from.
Don’t you get asked what the VAT rate of the prepayment is, or is this just under certain VAT scheme settings?
It depends how you tag it. In most cases, yes. But if for example, you tag the payment to multiple invoices and leave the balance as “unallocated”, I believe (will need to double check) that it’s recorded as 20% and adjusted automatically if the invoice is different.
sorted. i un-tagged the credits on the bank statement and the vat report showed no vat on sales which is as it should be. I only need to record weekly sales totals in quickfile as credit control of customers is done through my website so in future I will just tag expenses going forward.
I don’t think that actually fixes the problem though which sort of defeats the object of using Quickfile as the backing report for the VAT return will be wrong.
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