Question

I'm about to file first Flat Rate Scheme VAT through QB.There is a reverse charge invoice.If I use tax code 20.0% RC SG VAT is shown on box 4 but not box 1. Is it a bug?

Forum|Forum|7 years ago
April 30, 2019
2 replies
0 views

HMRC says the following on this:
If your business "purchases services from outside the UK to which the reverse charge applies" - "these supplies should be dealt with outside of the Flat Rate Scheme. Exclude them from your flat rate turnover but record them in boxes 1 and 4 of your VAT Return, as you would under normal accounting. "

QuickBooks Online

E

EmmaM

Hi Alexy,

This is a known issue at the moment with the reverse charge code that our engineers are working to resolve. In order to add you to the investigation please contact us via private message on either Twitter of Facebook so that we can take your company ID or email address as the community page would remove this if you post this.

Thanks

Emma

C

Charlie Winter

Hi,

Has this been fixed? I'm trying to submit my first VAT return using RC MPCC and am having the same issues under flat rate?

Thanks

Charlie

AlcaeusF

Thanks for joining this conversation, @Charlie Winter.

We received reports regarding users having the same issue. A ticket (INV-36974) has been created and forwarded to our Product Engineers. They're now working to fix this as quickly as possible.

In the meantime, I highly suggest contacting our Phone Support team so they can add you to our notification list. This will help our Engineers determine the number of affected users. An email notification will be sent to you once this has been resolved. I'll also inform you here when we get the update as well.

Here's how to reach them:

In QuickBooks Online (QBO), click the Help (question mark) icon at the top right.
Select Contact Us at the bottom to connect with our live support.

Just in case, I'll add these articles for future reference:

Please leave a comment in this thread if you have any other issues or concerns. I'll be here to help. Have a good one!

M

MrsGlynnie

Hello - this was first raised in April 2019. I've encountered the same problem - July 21. Is there a fix or a work around please? I was considering trying the VAT code 20.0% RC MPCCs to see it that was a work around. However as new to Quickbooks & learning as I go I was unsure of the implications.

Help appreciated - thanks.

G

GlinetteC

Thanks for joining this conversation, MrsGlynnie.

I'm pleased to let you know that you can now adjust the Box 1 value for the customers on the Flat Rate VAT Scheme. Any adjustments you make to Box 1 (VAT due on sales and other outputs) no longer affect Box 6 (net value of sales).

Here's how to do it:

Go to Taxes then VAT.
Select Prepare return on the open VAT return you wish to adjust.
Click Adjust next to Box 1.
Choose the correct Adjustment account, and enter the Adjustment amount.
Once you select Save you will see a pop-up message to confirm the new adjustment. Please read the message carefully and if you agree, click Go for it.

You can find additional information about the process by following this article: Flat Rate Scheme (FRS) in QuickBooks Online.

I'll be around if you have other questions about the FRS. I'm here to help.

M

MrsGlynnie

Thanks for your prompt reply. Just to be clear:

I post an entry in Box 1 Adjust for the Vat element of the reverse charge. This will be mean the overall impact of the reverse charge on my net Vat payable ( box 5) is correct at nil.

However I am also meant to disclose the vat exclusive purchase value in box’s 6&7. There is no adjust option here. Any advice please?

Many thanks

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