Hi,
Our business has been registered for VAT from the 01/06/2020, we have set that date as the starting date on Quickfile, however, the system is pulling the transactions from the 31/05/2020. Could you please advice how to solve this?
Thanks
What is the type of scheme you are registered for and what are settings on QF?
We are registered for the VAT standard rate scheme
Cash basis or accrual?
sorry, is cash basis
If it is appearing under box 6 then it is not adding to your vat liability as such but only showing part of sales under box 6 as payment received for invoice is after vat date.
If it is showing under box 1 as well then you cannot use cash basis because vat invoice is issued before vat date on QF. Make sure original invoice is not subject to vat , if it is then you will have to use accrual basis as cash basis requirement is
"You can’t use it for the following transactions (you have to use standard VAT accounting instead):
where a VAT invoice is raised in advance"
Thank you very much for your answer.
Actualy the problem is with the puchases, the invoices are appearing under box 7 and 4.
Thanks
If you’re on cash accounting and you’ve set your VAT start date as 1st June then any payments dated 1st June or later will be included in the return, even if they’re paying purchases that were dated earlier.
If these 31st May purchases aren’t ones where you’re eligible to reclaim the VAT on pre-registration expenses anyway, then I’d just edit the purchase record so that it has the gross total in the net column and zero in the VAT column - that would still appear in box 7 but wouldn’t contribute anything to box 4. Whether or not you’re eligible to claim the VAT depends exactly what the purchase was for, you’d be best clarifying your specific case with an accountant.
Ian is right, you need to correct your purchase invoices before vat registration date so that nothing show up in box 4. Pre-reg vat reclaim is done via manual adjustment subject to qualifying criteria . This should help https://www.gov.uk/vat-registration/purchases-made-before-registration
Thank you all for the help
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