VAT reporting for agriculture

[nadine]

Hello,

I’m hoping our needs are not too specific and that general advice can be given.

We’re a farm, limited company and have just registered for VAT.

As the vast majority of our produce is an agricultural good (zero rated for VAT), we are able to receive a VAT refund on the VAT incurred producing the good but do not have to charge VAT to customers.

However, we do need to pay vat on one item that we sell in our farm shop.

Since using Quickfile, I have uploaded all of the ‘sales’ into the system via bank statement. These bank statements show deposits from Stripe, Square and other payment processors. Within these bank statements are both payments received for the 0 rated vat good (the majority of our sales) and payments received for the one item that is vatable.

Is there a way I can input or tag the sales that are vatable and are not? Ie a % of an import made from a bank statement?

Can Quickfile generate the necessary report for Making Tax Digital?

Thank you!

[QFMathew]

Hi @nadine

I’ll start with your last question - can QuickFile do the necessary reporting for MTD. The answer is yes

Using the data on your account, QuickFile can generate the VAT return and submit it to HMRC electronically.

Generally, with the likes of Square, Stripe and other payment processors, you would have a merchant account to split out the payment between the income you receive, the fees paid, and the amount your client paid. We have a guide on this, here: Handling payments from merchant accounts

The income element can be tagged to a sales invoice (this can be a generic client, called something like “Daily Takings”), but it’s the invoice itself that would split out the VAT.

Within the invoice, you would have a separate line for the 0% VAT, and 20% VAT. This guide may help with this: Accounting for daily takings

[nadine]

very helpful,thank you!