Hi,
This is not a new topic but I would still like to gauge your opinion. I would like to know what people are doing with regards to posting invoices from non vat registered suppliers for a taxable supply? I am probably siding with those who include it box 7 of the vat return and am interested to finding out how people post these items in their accounting software. I deal with XERO and SAGE.
I think a lot of people out there are using the ZERO rated code which I don't think is strictly correct as the item is not ZERO rated but agree that this does achieve the objective of getting the net value into box 7.
Does anybody standard rate the item and nil value the VAT field? Can you do this in SAGE and XERO?
Thank you
Replies (10)
Please login or register to join the discussion.
we use sage and what I have done it to use a spare vat code (eg T3) set to zero vat, and to appear in box 7 - at least that way all the non-registered, vatable supplies can be separated, and identified if need be, for reconciliation purposes.
Same thing
Thank you for your reply but could I ask how you manage to get the NET value into box 7. Easy to get the Gross value of the expense or purchase in box 7 but not sure how to get the net value?
Thank you
If the supplier is not VAT registered then the GROSS value is the NET value.
Sometimes not worth the effort
If it's so significant that it bothers you, you can always jot the figures down on the back of a fag packet and use HMRC's excellent VAT Return software.
Sometimes it's not worth amending the software to save a few minutes' work a quarter.
Outside the scope
I think you will find that it does not have to be included in the VAT return, as they are not VAT registered. They do not charges VAT , I have checked with a text book and this supports the view.
In sage it should be T9 and therefore will not show on the VAT return, perhaps not something to worry about though.
Big Debate
I think you will find that it does not have to be included in the VAT return, as they are not VAT registered. They do not charges VAT , I have checked with a text book and this supports the view.
In sage it should be T9 and therefore will not show on the VAT return, perhaps not something to worry about though.
There was a huge debate on this not so long ago. I agree with you - but the general consensus was that we were wrong.
Thanks for your reply
Thanks for your reply
Asked a VAT officer a few year ago and he said that was the correct treatment, however they would not be worried as long as the business was consistant with its treatment
Perhaps each VAT inspector may have a different opinion but it is in reality it is out side the scope for VAT.
Still agree
Thanks for your reply
Asked a VAT officer a few year ago and he said that was the correct treatment, however they would not be worried as long as the business was consistant with its treatment
Perhaps each VAT inspector may have a different opinion but it is in reality it is out side the scope for VAT.
I still agree with you.
But - either way - it's never been a problem. I've never had a VAT control visit on the basis that the Box 7 figures didn't look right.