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While preparing the VAT Return, the system is calculating VAT @ 14.5% (FRS) on the Net Sales (100+20%) instead of the Gross Sales (100). Please help correct this.

 
1 REPLY 1
QuickBooks Team

While preparing the VAT Return, the system is calculating VAT @ 14.5% (FRS) on the Net Sales (100+20%) instead of the Gross Sales (100). Please help correct this.

Hi there, usersonal-nigam.


The information shown on the VAT return is correct. QuickBooks calculates the amount based on gross sales (inclusive). However, Box 6 is labeled as the Net value of Sales that is without the tax. I’m also adding an article that provides a breakdown on how QBO computes the FRS: UK Flat Rate Scheme: How does it work?


Additionally, this guide covers all the details about the VAT Flat Rate Scheme and how to manage two rates: HMRC.


Please don't hesitate to let me know if there's anything you need, I'm always up to talk about QuickBooks. Thanks for reaching out to the Community and have a good one.