When Vat isn't charged

When Vat isn't charged

Didn't find your answer?

With Vat being the thorny issue it is, I have a question regarding billing;

If we are registered for Vat, and the person making the supply isn't, should the bill be input as zero rated or just left blank, thus not being included on the Vat return purchases figures?

Thanks
Rob

Replies (1)

Please login or register to join the discussion.

avatar
By User deleted
01st Apr 2008 12:45

Should be Zero rated (or similar)
The supply is "within the scope of VAT" despite the supplier not being VAT registered. You should be accounting for the full amount of the supply in Box 7, and no VAT should be accounted for in Box 4. In the majority of book-keeping software packages, "Zero-rating" the supply will do that for you. If the software uses Codes for VAT, there may be another code within your software package for supplies of this type. Whether or not you need to use it instead of zero-rating depends on the information needs of the organisation.

Thanks (0)