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

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.


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?

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.

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