We have a client who is a courier (white van man type) and is registered for VAT under the flat rate scheme. He is doing work for an overseas (EU) company and asked the VAT helpline how to deal with this.
Their advice was: -
1. Don't charge the customer VAT;
2. Don't include it in the calculation of VAT due under the flat rate scheme;
3. Include the figure in box 6 (sales) on your VAT return;
4. Include the figure in box 8 (EC sales) on your VAT return.
I don't agree with this and would be grateful if someone could confirm that I'm correct and not the VAT helpline. I agree with 1 & 2 but I think it should not be included in either box 6 or box 8.