Company is registered on the Flat Rate VAT scheme. It makes a supply (of recruitment services) to a company in Guernsey.
According to the HMRC helpline, this supply is "outside the scope of VAT". But the helpine also advises that the supply should be included in Flat Rate Turnover calculation (so although there is no VAT on the supply, HMRC get x% of it!)
Section 7.3 of VAT notice 733, "What income do I exclude from my flat rate turnover?":
"You exclude from your flat rate turnover:
non-business income and any supplies outside the scope of VAT"
My conclusion is that I don't include VAT on the sales invoice and I exclude it from the calculation of flat rate turnover. Is this correct?
Thanks
stephen smith
Replies (2)
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Half an answer...
You don't include VAT on your invoice (we had a similar question last month which took a fair amount of research to answer) - afraid I don't know about the flat rate scheme, but from what you have said I'd agree you exclude it.
Fraser