VAT return errors for Cash Accounting

Problem reported by Sarah Heron 5 years ago

I am trying to complete a VAT Return and the system is picking up unpaid invoices in boxes 1,6 and 8, and missing invoices PAID in the relevant quarter. Our company uses Cash accounting, and are using the cash accounting scheme on clearbooks.

8 Replies

Hi Sarah,

That is strange -which Quarter are you attempting to run a VAT return for?

Please let me know, thanks!

Tommy

QTR ending Sept 17. Happened with one EU customer and 2 uk based ones.

Hi Sarah,

I have taken a look, it appears to be fine, for Box 1, there are a few part paid invoices and therefore, the VAT return has included those payments. Could you provide some example invoice/ bill numbers?

Please let me know.

Thanks,

Tommy

H i Tommy,

Thanks for taking a look, that does seem to explain the UK ones which is most of them.

The eu invoices are Inv 006945 and Inv 006871

Regards

Hi Sarah,

No problem - according to HMRC guidelines, the value entered should be all intra-EC supplies of goods made in that reporting period (excluding VAT) and not the value of payments received in that period. It is probably best to double check with HMRC, but as far as the VAT calculated, this should have no affect as the invoices are zero-rated.

Thanks,

Tommy

Hi Sarah - Tommy's right. In section 4.2 of HMRC's VAT notice 700/12, dealing with VAT return entries for those on Cash Accounting, it sets out rules for the sums to include in boxes 1,4,6 & 7 but tells you that sums in other boxes (eg 8) should be entered on the normal basis.

This is to make sure that all EU VAT reporting is on the same basis as not all EU countries may have cash accounting.

Hi Tommy, Paul,

Thanks for clearing that up for me. makes a lot more sense now.

Thanks Paul for clarifying, it's always good to have an experienced accountant's perspective!

Much appreciated.

Tommy

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