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himynameisdaniel
June 3, 2020
Solved

VAT return - Box 6 missing sales from non - EC

  • June 3, 2020
  • 4 replies
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Hi - I have provided a service to a Canada client and raised an invoice with 'No VAT' as it's outside the scope of VAT.

 

I understand these sales need to be reported in box 6 of the VAT return, but nothing is pulling through to box 6.

 

What is the easiest fix for this, or do I have to do a manual adjustment on each VAT return?

 

Thanks

Best answer by paul72

Hi @Nat07 

As above - O is not a standard QBO code, it must be one that's been added as a Custom Code.

If your O code is not hitting Box 6, don't use it.

Use one of the standard codes instead : Z=0% or Exempt (they have the same effect on the VAT Return).

People do get hung up about using the 'correct' code for these things but, as long as the VAT Return is showing the correct numbers, you're OK.

 

I created a Custom Code years ago - "Export" - nothing fancy about it but it helps keep exports separate from other zero rated / exempt transactions.

 

Hope this helps.

4 replies

JenoP
JenoP
June 3, 2020

Hi there, himynameisdaniel.

 

Transactions are reported to the different boxes on the VAT return depending on the tax codes that are assigned to them. Some of the most common codes that are reported under Box 6 are Exempt and Zero rate VAT.

 

On the other hand, outside the Scope of VAT Some goods and services are outside the scope of VAT and are not reported on the VAT return. Please see this article for the list of codes are and how they're being reported on the return: Common VAT Codes. 

 

I'd also recommend reaching out to your accountant for further advice about this transaction. 

 

Let me know if you need anything else. 

 

 

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himynameisdanielAuthor
June 6, 2020

Thanks. In this situation I am the accountant, the issue is there's a lot of conflicting thoughts on box 6. I can see other providers have flipped a few times on this topic so there appears to be no right or wrong answer, as long as the explanation is there for if HMRC question it right.....

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DHLondon
December 7, 2020

HMRC is clear that Box 6 should include non-UK/EU sales. So I'm not sure what the argument is.

https://www.gov.uk/guidance/how-to-fill-in-and-submit-your-vat-return-vat-notice-70012#section3

 

Box 6 total value of sales and all other outputs excluding any VAT

Show the total value of all your business sales and other specific outputs but leave out any VAT. Some examples are:

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skgrant90
March 5, 2021

Hello all,

 

We are running into a similar issue, where we have a sale to an EU country (now outside the scope of VAT) so we haven't charged VAT on the invoice. We understand we need to report this in box 6 on our VAT report, but we can't seem to find a code that shows it there without adding VAT onto it. We are also on the Flat Rate Scheme. Any advice on which code we should use would be greatly appreciated!

Thanks, Sophie

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Ashleigh1
March 5, 2021

Hello Skgrant90, thanks for posting on this thread, on FRS anything posting to box 6 will have the FRS% calculated on it. it is not possible at the moment in Quickbooks to have something in box 6 without it affecting the VAT due. 

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skgrant90
March 5, 2021

Thanks Ashleigh. So how are we meant to report the sale without paying the VAT? I have tried making an adjustment but that makes our saving with the FRS totally incorrect...! Surely other businesses are also affected by this?

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Nat07
September 2, 2022

Hi, I was wondering if anyone had a workaround or resolution to this?  We are on standard VAT not FRS and have sales made outside of UK so outside scope of VAT.  Entering on code O but these are not going into Box 6.  Any thoughts on how I can do a workaround until a resolution?

Thanks!

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GeorgiaC
September 2, 2022

Hi Nat07, you can enter an adjustment against box 6 on the VAT return - is O a custom code that has been created on your QuickBooks? You can view the default QB codes and their postings here. 

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