Hi, does anyone know if I need to manually exclude invoices that are zero-rated for VAT from my quarterly VAT return in QuickFile? I have a client based in Australia so my invoices to them do not have VAT added. It looks like QuickFile includes these invoices in my return, but I’m not sure if I then need to make a manual adjustment to the return or not. If anyone knows the answer I’d love to hear! Thank you.
Hi @sfarrant
To exclude an invoice from VAT return, you would use the “Out of Scope” option, which is suitable for any invoice that falls outside of the scope of UK VAT.
The different options and their effect can be found here: VAT Options Explained
Hi Matthew, thanks very much for the quick reply. So just to clarify, it’s not enough to set the VAT rate to 0% next to the invoiced amount, I also need to select out of scope in the additional options box?
If the invoice is out of scope for UK VAT, then yes, you would select the “Out of Scope” option, too. This ensures it’s reported in the correct boxes on the VAT return.
Brilliant, thanks Matthew for your help.
1 Like
Not.
Exports of goods are zero rated, not out of scope, so those definitely go in box 6 anyway.
For supplies of services to an overseas customer, the HMRC guide to filling in your VAT return specifically singles out
as being something that should go in box 6 - these sales are technically out of scope of UK VAT, but HMRC say you should list them in box 6 anyway.
This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.