OK, so I’m finding this a bit complicated. I’ve listed the things that we buy/sell that have no VAT, either because they are zero rated or exempt. Can anyone confirm that i have this right?
Zero Rated:
VAT Exempt:
Also, is there still an issue regarding these figures showing correctly on VAT returns? Do I need to manually alter the figures?
Any input would be very gratefully received 
Sean
Hi @scoobeski
In terms of you being charged VAT, you would need to check the invoices that have been issued as your entered purchases should reflect these.
With you charging VAT, I think it may be best if you checked with your accountant (I’m not one) to ensure that you do this correctly and don’t upset the tax man!
I’m not aware of any issues, but maybe @Glenn could clarify - he may know something I’m not aware of
Its regarding invoices - the invoices don’t have vat, so I know there is no VAT, but wasn’t sure if marking as Zero/Exempt made a difference for the outcome of the VAT Return. I saw earlier posts that mentioned Zero & Exempt VAT figures would need to be manually altered and was just wondering if this was still the case
We have an explanation of the different VAT rates here.
You can mark invoices as VAT exempt using the method explained here. To zero rate a VAT invoice just set the VAT menu on the itemised section of your invoice to “No VAT”.
No extra adjustments are needed for either of these two scenarios. The adjustments I think you were referring to relate to EC reverse charge VAT on services.
The explanation of different VAT rates doesn’t fully explain how a company, registered for VAT, treats a suppliers invoice (for goods or services that are not in an exempt category), who isn’t registered for VAT.
Is that Exempt & Out of Scope, or No Special Treatment ?
If I put NO VAT in the VAT rate box, what VAT Options to I tick in the payment details ? - Exempt ? or Out of Scope ?
No special treatment, and just log the purchase as “no VAT” since you haven’t been charged any. “Goods or services that are not in an exempt category” are still “taxable supplies” under the VAT rules, but the supplier hasn’t charged you VAT on them because they’re not required to be VAT registered.
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