My QB generated EC sales list seems to be wrong!!
My accountant assures me that total sales to EU customers must be shown on the HMRC 101 form however QB generated form only includes the EU invoices that have the vat status code of ECG @ 0%
Hence sales/invoices to my EU consumers who are not vat registered (so the invoices have the VAT code of S @ 20%) are not included when they should be! Surely Quick Books form should base inclusion on if the invoice address is in an EU country and hence have nothing to do with vat code?
As a result i'm now confident that any QB customers who are vat registered and sell to EU customers who are not vat registered (i.e. EU consumers as opposed to Business customers) are submitting incorrect 101 EC sales lists (if they are using the QB generated 101 form to calculate this for them)
Does anyone else agree with that ?
Also confusingly I called HMRC twice this week about this to confirm and yesterday they said only include ECG @ 0% on the form BUT the day before when i called HMRC a different person said (like my accountant did) that all sales must be included, and i believe that to be correct.
So surely QB is miscalculating 101 forms in this scenario ?
Any help/guidance/confirmation much appreciated, especially how to get QB generated EC 101 forms/list to actually be correct in this scenario (when one has EU consumer customers who are not vat regstered) ?
I know i could go through the complicated process of setting up a new vat code so that it post correctly (say ECG @ 20%), however if that was correct way to fix this then surely that vat code would already exist since others would have already set it up ?
Many Thanks !
Thank you for contacting the Community.
For transactions to pull through onto the VAT 101 report you will need to use either 0% ECS or 0% ECG. Due to this being a VAT report QuickBooks will only show transactions with VAT applied to them.
QuickBooks uses the VAT codes to associate transactions with the VAT reports and in order to pull to the 101 report, the transactions must have either 0% ECS or ECG applied and the country listed within the customer's address details otherwise they won't show. They are both needed in order for transactions to show on the 101 report.
Let me know if you need anything further.
Ok so that confirms my fear then that QB is calculating VAT101 forms incorrectly in the scenario i have given ? Since 101 forms must show all EU sales irrespective of VAT code (i.e so should include EU consumer sales/invoices with vat code of S @ 20% then as HMRC and my accountant have both told me within the last 24 hours).
So how do we correct it ? Surely you just need to not include ECG or ECS as part of the criteria for inclusion into the EC sales list and just rely on invoice address, since that would then inc all required invoices as opposed to leaving out those inc vat at S 20%, which it is currently incorrectly not including (according to HMRC & my accountant) ?
I just posted a reply but its been marked as spam and removed !! Please re-instate it asap since its not spam and is directly relevant part of this discussion
I include again below
Ok so that confirms my fears then that QB 101 forms in this given scenario (& hence probably that of other QB users in similar situation) is incorrectly generating 101 reports since they are supposed to include ALL sales to EU customers not just those marked ECG or ECS @ zero percent !!
I checked with HMRC & my accountant within the last 24 hours and they say ALL EU sales must be declared on the 101 form/EC sales list, irrespective of the VAT code.
Surely if you just remove ECG or ECS @ 0% from the 101 list inclusion criteria and just go on the invoice address (including those which are in the EU in the EU sales 101 list) then the form will be correct ?
What I would advise is checking to ensure the address' are correct for your customers and the correct country is selected in the 'edit customer section'. If the correct country has been selected and VAT code they should post correctly on your VAT 101. If the country is selected and the transactions are still not posting correctly what I would suggest is ensuring the correct VAT codes are assigned to the relevant transaction.
Please let me know if there is anything else
Yes they are correctly assigned and the correct address is being used
I also called up VAT support about this and they said is something to do with the VAT code being S @ 20%, which is stopping it being included hence confirming that QB is incorrectly calculating the 101 form in this scenario.
That is what im saying its not including an invoice that does have correct address and vat code when it should be !! ??
For any transactions to post on the VAT 101 report a EU code is required. This means either 0% ECS or 0% ECG rather than 20% S.
If you use 20% S this is a normal VAT code and will therefore show on VAT 100 report, not 101 report.
Please let me know if there is anything else we can help with.
Yes exactly, thats what im saying - its incorrect according to both my accountant and HMRC to exclude EU customers invoices with VAT @ 20%, these should be included, not excluded & since QB is not including them then it follows that the QB generated 101 form is incorrect in this type of situation.
So how do we fix this ? How about creating an EU VAT code at 20% for example ? i.e. ECG @ 20% ?
I have your case details here, and have reviewed the comments and information given by my colleagues.
In Relation to your Query, the first thing i want to clarify is the Description of the EC Sales list (VAT101) on the HMRC Website:
Our VAT101 (EC Sales List) does not list the transactions which use S-20 code, because information on sales to EU Customers who are non vat registered is not required on HMRC's VAT101 (EC Sales List) form.
Looking back on your first post, you have mentioned specifically "Hence sales/invoices to my EU consumers who are not vat registered (so the invoices have the VAT code of S @ 20%) are not included when they should be! "
I'd recommend going back to HMRC to clarify, as you've been told 2 different things by them.
Thanks for letting me know, will you confirm what HMRC say? Just for reference, I'd probably quote this when i call them, this is the web address i gathered my information from:
Well I'd certainly rather be the cause of LESS work rather than MORE work