Is there a way to make the deductions on a sales invoice, e.g. commission, show in Box 4 and 7 of a VAT return?

KMA2020 · ‎November 04, 2024

We raise sales invoices to replicate those prepared by the agent, but in order to reconcile fully, we include negative lines for the items such as commission. But because of QB's incredibly clunky "Product/Service" element of sales invoices (seriously, can anyone explain why this is mandatory?), we add these service lines, but there is no option to make the expense element have an expense VAT code. So it appears in Box 1 or Box 6 as negative and requires manual adjustment. Also, we need there to be reverse charges this quarter, and so the manual journal is now twice as clunky. Am I missing a way to do this?

LouiseG · ‎November 04, 2024

The commission will not be displayed in Box 4 and Box 7 of the VAT return if you add it to the invoice, KMA2020.

If you include commission amounts on an invoice, they are reported in Box 1, which reflects output tax, and Box 6, which represents total sales.

To ensure that the commission is reported in Boxes 4 and 7 of the VAT return, you'll need to create a separate expense transaction specifically for the commission. This entry will recognize and classify the commission as an expense rather than as part of your sales income.

If you want the commission to appear in those boxes, you can create an adjustment in your accounting system to reflect it as an expense for VAT purposes.

Moreover, here's a guide to help you track and view your VAT information: Check how much VAT you owe in QuickBooks Online.

If you have additional questions, feel free to add them below. We're always here to help.

KMA2020

Ok - so no.

This is possible in Xero, FreeAgent etc.. Not that weird to have an expense shown on a sales invoice.

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Is there a way to make the deductions on a sales invoice, e.g. commission, show in Box 4 and 7 of a VAT return?

Is there a way to make the deductions on a sales invoice, e.g. commission, show in Box 4 and 7 of a VAT return?

Is there a way to make the deductions on a sales invoice, e.g. commission, show in Box 4 and 7 of a VAT return?

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