I've recorded my EU sales as ECS on VAT selection it doesn't pull automatically into my VAT return?

Hello caryn2,

Welcome to the Community - thank you for your question!

Which ECS code are you using on your sales?

Thanks,

Talia

Hi there

Thanks for getting back to me!

0% ECS - services we are supplying to EU VAT registered companies

I assumed this would pull through to Box 8 on the VAT return but it's included net sales in box 6

Does that sound correct?

Hello caryn2,

That is correct. As you are using a 0% code, the amount will not pull through to Box 8, as the vat amount is 0. It will be included in your net value of sales, as it is still a sale and so adds to your overall sales figure.

Hopefully this makes sense, please let us know if you need any further clarification.

Thanks,

Talia

I have the same problem. I realise it is included in box 6 but HMRC requires UK sales in box 6 and EC sales in box 8, otherwise VAT return is 'Incorrect'. In VAT details report QB does separate the UK and EC sales but even there it is in Box 6. How can we rectify or even manually amend it before submission.

Thanks for chiming in, @prav.

The compliance coding for VAT rates in QuickBooks Online (QBO) based on HMRC, only the 0.0% European Community Goods (ECG) will affect the box 8 in the Tax return.

If you're using the 0.0% ECS, you should change it to 0.0% EGS. For more information, consider checking out these articles:

• Common VAT Codes.
• VAT: Getting Started.

That should point you in the right track. Please let me know how it goes or if you need anything else. I'm more than happy to help. Cheers!

Thanks Fritz for your reply. I was using VAT code for EC Goods but some reason it wasn't working. Opened Sample Company file to check settings for this code and they were same as what I had. Closed the sample file, opened my company file and it claimed I was using Sample company file. Closed it, reopened it and this time it worked as expected. So, maybe a glitch or I missed something. Thanks just the same. You help much appreciated.

Hi, prav.

We're receiving reports that other users are getting this issue as well. Let me help point you in the right direction.

I'm researching to see if anyone else is having the same issue with EC VAT not working in QuickBooks and found that they are working to resolve this issue.

We would like to inform you that this has already been escalated to our engineering team. I’d encourage you to reach out to our QuickBooks Online Support and have them attach your case to INV-1649, so they can add your account information to the list of affected users. That way, our engineers can send you updates via email when they are available.

You can reach us through this link: https://quickbooks.intuit.com/uk/contact/.

These articles are good references:

• Set up and edit VAT settings, VAT codes and VAT rates.
• Common VAT Codes.

Please extend your patience while we're working for the permanent fix. Don't hesitate to drop me a line if you have other questions about VAT in QuickBooks Online. Have a good one.

Hello JennyA4G1,

Did you use the 0% or 20% ECG code? Is this for a sale or purchase?

Thanks,

Talia

Hi JennyA4G1,

I have EC for Goods (EC for Service does not work) set up as:

EC Goods Zero-Rated

Taxable 

For sales and purchases: Relevant EC Group Zero rated

I had to close and reopen the file. Hope it helps.

Prav

I am also having this problem - EU sales as ECS on VAT which doesnt show up in the VAT return?

Hi Liz

What VAT code are you using?

Hi John,

0.0% ECS (0%)

Thanks.

Liz

Hi Liz, 

Can I confirm if you are on the Flat Rate Scheme for VAT as the 0.0% ECS VAT code will post differently here than on the standard VAT scheme. 

On FRS, the 0.0% ECS code will not post to the return when used on sales forms.

Thanks

Hi, ECS 0% doesnt go in box 6 sales on our returns , which i've just realised- and it should be. this is for services not goods so they shouldn't be in box 8, but definitely should be in box 6. they are correctly marked as ECS 0% - is this being looked into please? why aren't these pulling thorugh onto VAT returns ?

thanks

Hi Jamie,

I found that if I mark my EC sales as ECG they go through okay and are correctly marked on the VAT return.  Hope that helps. 

Liz

Hi Jamie We'd like to assist you in resolving this issue. It may be a number of things that are causing the amounts not to appear on VAT report, Are you using the Flat Rate Scheme (FRS), are you on cash or accrual and are the dates of the transaction you are creating definitely within the date range of your VAT return?:thinking_face:

hi, no the client isn't on the flat rate, he is on accruals and yes i have checked the dates- the ECS 0% are not appearing anywhere on the vat return.

Thanks

Hi Liz thanks for the response. ECG 0% does go on but they also go in box 8, which as services i don't think they should be in box 8 - so i'm not sure about that actually preparing it correctly.

I might put them in as zero going forward but i'm still unsure how quickbooks has a code that isn't doing what you'd expect it to.

Thanks

Jamie

Hi Jamie Have you previously migrated from any other software or QuickBooks desktop? We would be grateful if you can provide us with a screen shot of your tax rate page: Taxes > VAT >  edit VAT > edit rates.

hi i've got round it, just created my own code called euro services that does what it should be.

thanks

Jamie