Disbursements - Showing in VAT Return

108 Consulting · ‎July 08, 2024

Dear All

When sending invoices to clients we add in the same invoice, both lines for Sales items (with VAT) and also lines for disbursements (without VAT)

The issue we're facing is the disbursements amount are still showing in the turnover element of the VAT return. The only way we've got around this so far is to make two seperate invoices i.e. one for sales items and one for disbursements but this is an extra step and also our clients don't like getting two separate invoices

Does anyone know how we can sort this out and use one invoice but not have the disbursements end up in our VAT calculations

John C

Hi 108 Consulting Thanks for reaching out to us here on the Community. If the disbursements aren't meant to have VAT/included on the VAT return you can use the No VAT in the VAT column for each disbursement line item.

108 Consulting

Hi John

We don't have the NO vat option

Only exempt and zero. Both of these still have the disbursements ending up in our VAT Report

The NO vat option doesnt show in our "hidden" vat list either. How do we add this

John C

Hi 108 Consulting I'd be grateful if you can navigate to your invoice > in the amounts are field change to exclusive or inclusive > select the VAT column > select the small drop down menu > select manage rates > ensure that No VAT is activated/toggled on > Done. You should be then able to select the No VAT code on the relevant lines of your invoice.

108 Consulting

Hi

As in the screenshot we don't have that option. Their is no "manage rates" section

John C

Hi 108 Consulting I note that from the screen shot that you do have an out of scope option which is the same as No VAT, I'd be grateful if you could follow the above instructions however us the out of scope option.

108 Consulting

Hi

Yes we do have that. However when you select that ALL lines are then with No VAT

As per the original question and issue on this thread we want to be able to have a combination of Vatable services and NO Vat in the same invoice as currently we have to make 2 per sale (i.e. for sales items and disbursements)

108 Consulting

To confirm we dont have the "manage rates" area either

John C

Hi 108 Consulting When you select either exclusive or inclusive of VAT in the amounts are field do you have an out of scope option in the VAT/Taxes column as I can't make this out from the screen shot?

108 Consulting

Hi John

No we don't have an out of scope option in the VAT Column. We only have Zero Rated, Exempt and Standard Rated

I've attached another screenshot

John C

Hi 108 Consulting Thanks for the screen shot. I note that your account isn't a UK account it relates to the UAE region, This is Community platform is for the UK and we only specialises in the UK product. If you'd like confirmation that the you would have to create separate invoices I'd grateful if you can reach out to the team that supports your region by using the following link: https://quickbooks.intuit.com/learn-support/en-global/contact

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Disbursements - Showing in VAT Return