So I have invoiced a few companies in the Netherlands (im based in the UK) and I set the VAT to 0.0% ECG so as to not charge them VAT.
However, in my VAT return the total I owe the UK HMRC is including the VAT of those invoices. I would assume quickbooks took of that deduction before I submitted my VAT. So my question is has quickbooks mucked up or does HMRC remove the % from the ECG once I've gone through the government gateway?
Thanks in advance.
Thanks for posting your question in the Community, tobijenkins1980,
I'm here to provide information about how specific VAT Codes report on VAT Return.
If the EU customer is not VAT registered and the VAT code used is 0.0%ECG, then the applicable UK rate of VAT is charged. It will report on VAT 100 return on Sales form to Box 6&8 Net Sale. On Purchased form it will report +/- VAT at 0% to Box 2 & 4 and +/- Purchase to Box 7 & 9.
For additional information, I'm including some helpful articles that you can check on how different VAT codes work in QuickBooks Online:
If you have any other questions concerning your QuickBooks Online account, please don't hesitate to visit us again.
Thank you MirriamM.
Im confused as the companies I invoiced are all VAT registered?
Is there a way for me to tell quickbooks that they are?
Thanks for reaching back to us here in the Community. Allow me to step in and help provide information about your VAT concern in QuickBooks Online.
You're correct with not charging those customers with valid VAT registration numbers. However, you then will charge them under the reverse charge mechanism.
I recommend adding the complete details as well on each of their profile under Tax info. Please also know that the system will be depending on the VAT codes/rates entered on every transaction.
It would be best to seek expert advice from an accountant to ensure you're using the correct EC VAT codes. I'm adding the article again for your reference:
If you continue to encounter a problem on your tax return, I suggest reaching out to our Support Specialists this time. They'll need to check further what's causing the issue to happen on your end.
Here's how you can reach them:
Please know I'm always available here to help you with filing your tax return. I look forward to hearing from you.
Edit the customer information, enter the VAT number in the 'Tax info' tab 'Tax Reg. No.'
Also (as I found out to my cost) you must complete the address information otherwise it will NOT be included on the VAT101 form (which is different to how the desktop version worked)
I see. I have done all that.
Had a chat with the help team and they answered my question.
I am on the flat rate scheme and quickbooks will always take the 10% (thats my percentage on the FRS) of the gross of the invoice and add it to the VAT section of what I owe HMRC.
When I submit the VAT to HMRC via quickbooks (with that 10% of all EU invoices charged at 0.0% ECG included) I then deduct that VAT within HMRC's website and those invoices VAT will be deducted from the total submitted by quickbooks.