I have just tagged all my transactions in my banking and run the VAT Return report which showed a high VAT Claimed value. I exported to look at the detail and found the following:
For the INVOICE 14801 WIGAN shows Net amount is £999.93 (we are zero rated VAT for books) Plus Shipping VAT of £4.65 (We are claim VAT for shipping).
When I prepared the VAT RETURN the report shoed the following for the same Invoice:
WIGAN NET £837.15 and VAT £167.43
This has happened to several invoices and therefore shows a high VAT Claimed value which is incorrect. It appears to have calculated VAT on the total amount of the
invoice instead of just the shipping component. I have checked the invoice and it shows correctly the VAT Rate and Amount.
I have also noticed that invoice with the correct VAT have their Invoice number associated with the entry. These were entered when I last did my VAT back in July. But the entries entered after the end of the September quarter with the incorrect VAT are blank, i.e. they have no Invoice number.
I have change the way I entered the invoice amounts by not using amounts include VAT and it is still the same problem. When I look at the report all invoices entered since I last did the VAT have been treated as flat rate VAT. What is showing in the report is 20% of the total amount when it should only be 20% of teh shipping cost as the books are zero rated for VAT,
I replied to your support ticket earlier with mode detail but this mainly relates to the invoice dates being later that the vat return period and you are on cash accounting.
Just to confirm your diagnosis is correct. When I first entered the invoice into QF I gave it the correct invoice date. But I was unaware that if I modify the invoice which I did the date of the modification is used and all the invoices that are incorrect show invoice date of 13/10/25 which is when I modified them.
So many thanks and lesson learnt. Check the invoice date if I carry out a modification.
There is an option related to this on the advanced settings page of your QuickFile account - “Update issue date on invoice send”. If this is turned on then it will update the invoice date to the current date when you send the invoice to the customer, it it is turned off then the date should stay where you originally created it even if the date you send to the customer is later.