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Zero rate VAT & other questions?
I've probably been doing this wrong for years, but do you include zero VAT items in the input/output (total vale of sales/purchases)? As my accounting system includes all purchases and sales regardless of whether vatable or not, I just stick in the total.
Also can anyone explain how you account for a reverse charge (or tax shift).
Hoe about if you answer the question?
Tringyokel, yes that's right. I might have a purchase from a non VAT registered client but I still add that to total purchases. Just thought those figures may be used as a check for the VAT entered (i.e. the VAT should be 20% of the input/output totals)
2 Answers
- !Lv 71 decade agoFavorite Answer
Sounds as if you are in quite a mess - probably time to get an accountant to help you sort out what's been going on.
- tringyokelLv 61 decade ago
I take it you are talking about boxes 6 and 7 on the form - value of inputs and outputs excluding VAT.
These boxes should include zero rated items but exclude items outside the scope of VAT (such as employee's wages).
Exempt items, such as insurance should probably not be included but may be provided you follow a consistent treatment.
