VAT Return amounts don't match Invoice VAT (currency conversion)

[robmac]

QFMathew kindly helped me to configure GBP VAT on invoices received in USD to get the correct invoice VAT in QF to match the invoice received.

But, I find the VAT Return report doesn’t match the VAT on the invoice. I have viewed Nominal ledgers to check the VAT amount, but it is not the same as the amount in the VAT Return.

[ian_roberts]

Are you on cash accounting? Is QuickFile using the exchange rate of the payment rather than the one from the invoice?

And for the accountants on here - if this is the explanation then is that a bug in QuickFile? If the invoice date and payment date exchange rates differ which one should be used for the purposes of cash accounting?

[robmac]

Hi Ian
Yes, I’m using cash accounting. I did wonder whether the currency conversion was the problem.
We are getting invoices from AWS (cloud hosting) which are USD but they apply their own exchange rate to provide a GBP VAT invoice. If I just generate an invoice to match the bank statement entry, the VAT doesn’t match the invoice (because the bank has a different FX rate).
So, I create a USD Invoice in QF and apply the FX rate from the AWS invoice to get the correct VAT amount when the 20% is applied.
But for some reason this amount doesn’t appear in the VAT Return.