VAT when collecting/ making purchases on behalf of a client

We’re collecting money on behalf of the client and at times we also spend money on behalf of the client.

While the VAT treatment is correct (no VAT), at the moment they seem to go into box 6 and 7 in tha VAT reporting.

Is there a way to deal with this so they don’t go into the VAT reporting as Sales and Purchases (as they are not Sales and Purchases)?

Before QuickFile we created a new VAT code and we set up a rule not to show in the VAT report.


I am not an accountant so it’s probably best to check with them - but you will be able to do an adjustment within your vat return to ‘remove’ the transactions.

You can create client account to record money in and out which are disbursements type and use that account while creating sales invoices to show money on account received and purchases (money paid on account) with NO vat, you would have to adjust box 6 and 7 for amount during the period under Client account.

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Thanks for the Feedback.

we do just this at the moment, but I was looking for a way to avoid any further adjustments - so be able to create corresponding accounts that would not be showing in box 6 and 7.

I would rather not do any adjustments.

@QFBeth @QFMathew : is it possible?


You can record transactions (money in and out) under client account and just mention in notes about money received on account on sales invoices and spent on purchases. You have to avoid line items to not do adjustments

Hi @OvidiuS,

Unfortunately this is not possible through QuickFile, You will need to do manual adjustments.