Vat return/VT cashbook

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littlelottie20

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Apr 24, 2018
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  • #1
    Hi there
    As the above title I am doing my first vat return. I sell on ebay and amazon and wondering what figure to put in VT with regards sales. If I put the actual sales total obviously vat is calculated on that. As I receive less in funds from amazon during the period do I put the sales as the actual amount of disbursements received during that period.
     
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    Mr D

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    Feb 12, 2017
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  • #2
    The figures that your buyers pay.
    If they pay £10 plus £2 postage for an item then the cost to the buyer is £12 and the VAT element is £2 on a normal VAT able item.

    Your amazon fees are a cost of the business, not a cost of the VAT. Show the fees in your normal costs alongside your insurance, wages etc.
    The VAT money is the government's, not yours. By registering you are an unpaid tax collector.
     
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    littlelottie20

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    Apr 24, 2018
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  • #3
    Mr D said:
    The figures that your buyers pay.
    If they pay £10 plus £2 postage for an item then the cost to the buyer is £12 and the VAT element is £2 on a normal VAT able item.

    Your amazon fees are a cost of the business, not a cost of the VAT. Show the fees in your normal costs alongside your insurance, wages etc.
    The VAT money is the government's, not yours. By registering you are an unpaid tax collector.
    Click to expand...
    Sorry either I didn't explain my query correctly or you misunderstand. I know what vat I have charged etc and am well aware it's HMRCS and not mine, what i mean is on my vat return will I use the figures for total of items sold (but funds not received for some yet) or go on the actual amounts that have so far been disbursed to me by Amazon and the other once recived would go on the next vat return?
     
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    KM-Tiger

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  • #4
    littlelottie20 said:
    use the figures for total of items sold (but funds not received for some yet) or go on the actual amounts that have so far been disbursed to me by Amazon and the other once recived would go on the next vat return?
    Click to expand...
    Provided your turnover is below £1.35M you can do the latter.

    It's called VAT Cash Accounting. Google that to find further info.
     
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    Mr D

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  • #6
    littlelottie20 said:
    Sorry either I didn't explain my query correctly or you misunderstand. I know what vat I have charged etc and am well aware it's HMRCS and not mine, what i mean is on my vat return will I use the figures for total of items sold (but funds not received for some yet) or go on the actual amounts that have so far been disbursed to me by Amazon and the other once recived would go on the next vat return?
    Click to expand...

    Sorry - have come across way too many sellers who want to use the figure amazon pay them as the figure for VAT. Perhaps I indeed misread.

    I was told to use what buyers pay - I'd have the funds 3 days later so didn't make any difference overall to bank account.
    By the time I did the VAT return I had all the payments in the bank.
     
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    littlelottie20

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    Apr 24, 2018
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  • #7
    Thank you for all of your help, can I ask one last question. I have invoices with both vat rated 20% and zero rated products from suppliers all on same invoice. Do I need to split these up on VT or can I just manually input the total vat paid on each invoice? Also with my sales would I need to split the totals up or just again input the total vat charged? Kind regards
     
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    MyAccountantOnline

    MyAccountantOnline

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    Sep 24, 2008
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    myaccountantonline.co.uk
  • #8
    littlelottie20 said:
    Thank you for all of your help, can I ask one last question. I have invoices with both vat rated 20% and zero rated products from suppliers all on same invoice. Do I need to split these up on VT or can I just manually input the total vat paid on each invoice? Also with my sales would I need to split the totals up or just again input the total vat charged? Kind regards
    Click to expand...

    It doesn't matter how you do it provided your records and VAT returns show the correct VAT and anyone looking at your records, including HMRC, can see how and where your figures come from.
     
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    Lisa Thomas

    Lisa Thomas

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    Apr 20, 2015
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  • #9
    Considering you have so many queries and the consequences of getting it wrong can be serious, it might be best for you to pay an accountant to deal with the taxes.
     
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    paulears

    paulears

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    Jan 7, 2015
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  • #10
    The real point here is that the figures that matter are on your invoices, and on your receipts. Mixed receipts are everyday - so the things that matter are the presence of the VAT number, and the amount in the VAT column.

    On the scheme you are in - what did you select when you registered? Your first VAT return expects the accounting system you chose to be the one you use. Don't forget that your next VAT return will have too be digital if your first isn't - things have changed as of yesterday.
     
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    littlelottie20

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    Apr 24, 2018
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  • #11
    paulears said:
    The real point here is that the figures that matter are on your invoices, and on your receipts. Mixed receipts are everyday - so the things that matter are the presence of the VAT number, and the amount in the VAT column.

    On the scheme you are in - what did you select when you registered? Your first VAT return expects the accounting system you chose to be the one you use. Don't forget that your next VAT return will have too be digital if your first isn't - things have changed as of yesterday.
    Click to expand...

    Hi I didn't apply for any specific scheme just registered for Vat and will be submitting online. I will be using the standard scheme but my query was just how best to record rated and zero rated on VT software for the best eg whether to separate or combine. Obviously the amounts of input/output will be the same either way on actual VAT return.
     
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    paulears

    paulears

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  • #12
    I don't understand? You just record the totals and VAT content if there is one.

    TOTAL VALUE OF SALES AND ALL OTHER OUTPUTS EXCLUDING ANY VAT.
    TOTAL VALUE OF PURCHASES AND ALL OTHER INPUTS EXCLUDING ANY VAT.

    These are the two important questions. the total value of your sales, ex-VAT and the same for your money spent on doing business. Two columns. Have you got some special software already? If you use software, you usually just enter the amounts of purchases with or without the VAT as applicable and it produces the figures for the boxes for you. However - from July, you need special software or bridging software to link a spreadsheet to HMRC - I guess you know that anyway, so it's just one return the old fashioned way.
     
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