VAT Flat Rate Scheme - two questions

[David Story]

Hello
I've got two easy questions. I'm on flat rate scheme and on HMRC website I found this info:


With the Flat Rate Scheme:

1. you pay a fixed rate of VAT over to HMRC
2. you keep the difference between what you charge your customers and pay over to HMRC
3. you can’t reclaim the VAT on your purchases - except for certain capital assets over £2,000

Can you explain what point 2 means?

Another question: I took a loan, do I need to include it as an income in my VAT return sheet?


Thank you
David

 

[john1989]

It means you collect vat at 20% and pay vat over according to your flat rate scheme %.

You wouldn't include a loan on the Vat return.

 

[David Story]

Thanks John.
What about sales outside of EU? Do I need to include them as well?

 

[Scalloway]

How to work out your Flat Rate turnover

https://www.gov.uk/government/publi...usinesses#determining-your-flat-rate-turnover

 

[David Griffiths]

Thanks John.
What about sales outside of EU? Do I need to include them as well?

Sales of what? Goods or services? And if services, exactly which?

 

[David Story]

Sales of what? Goods or services? And if services, exactly which?

Sales of goods.

How to work out your Flat Rate turnover

"link here to HMRC which I had to remove"

I read it 5 times yestarday, specialy paragraph 6.4. But there is only about EU countries.

 

[David Griffiths]

Sales of goods are included in your flat rate turnover as they are a taxable supply for VAT purposes, normally zero rated. The flat rate scheme is not necessarily appropriate for all traders