VAT 100 problem with EU Sales

STSecuritiesSTSecurities Member Posts: 8

Sorry if this has been discussed before, but I can't find an answer in the threads.
We recently registered for VAT and I followed the help guide on setting up Wave to track VAT. All our sales are to EU countries but despite creating the ECS and ECG sales taxes at 0% none of my sales to EU countries or purchases from them are showing in boxes 8 and 9 of the VAT 100 report.

Can anyone help as I have to do my first return in October.

Thanks

Comments

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    Your sales to other EU countries are only zero rated if you're selling to EU businesses that have supplied you their VAT/TVA registration numbers (or where your goods are sold to EU citizens where the goods are zero rated, obviously). Your EC Sales list reporting is relevant only to sales to EU businesses where you have not charged UK VAT under the reverse charge regime. I know this isn't the question you raised but it wasn't wholly clear from your text if you meant your sales or strictly B2B.

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    I presume you remembered to "include sales tax" when you entered your relevant transactions and selected the ECS/ECG code?

  • STSecuritiesSTSecurities Member Posts: 8

    Hi Andrew
    Yes all our sales are strictly B2B and to appropriately "VAT" registered organisations. We have their sales tax registration numbers file.
    So when I post may invoices to Wave I use a VAT code of EU Sales 0% and the Wave accounts abbreviation of ECS and the tax rate is 0%. I have attached a image snip from an invoice for you.

    But I don't get the expected outputs in the VAT100 report. The report has other anomalies in it as it seems to think somewhere I have sold something in the UK for £22.30, which I haven't. So all very confused at the moment.

    Adrian

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    I can see that you're not getting any figures appearing in Box 8, which clearly is incorrect - have you looked at the underlying breakdown of the Box 1 figure too - if you have no UK sales then this ought to be zero, clearly.

    I'm not wholly sure from what you have provided thus far exactly why the VAT100 isn't pulling through the correct data. I take it that the GBP converted value of your invoice is showing in the make up of the Box 6 figure?

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    Have you set your ECS & ECG sales taxes as recoverable?

  • STSecuritiesSTSecurities Member Posts: 8

    Yes the total value of sales for the period this VAT 100 covers is €15,000 which equates to the £13,596.32 allowing for fluctuations in exchange rates.

    As far as I can tell the taxes are set as recoverable. see attached screen snip.

    I have no idea where the £5.35 VAT owinf on UK sales comes from. If I change the reporting periods to 01/09/2019 - 09/09/2019 then VAT owing is £0.00 . If I change the reporting period to 11/09/2019 to 12/09/2019 then the VAT owing is also £0.00 but if I include 10/09/2019 then the VAT owing is ££5.35. However as you an see in the attached snip of the transaction log there is no UK sale on 10/09/2019

    .

    It just seems to be having a moment, that I can't sort out.

  • STSecuritiesSTSecurities Member Posts: 8

    p.s. I am very grateful for your interest and assistance so far Andrew.
    Thank you.

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    I think this one might be a tech issue then as I can't see why it's not producing the correct information. Perhaps @PaulC or @JamieD could chime in on this?

  • PaulCPaulC Administrator Posts: 94 admin

    @STSecurities can you please tell me the date of the invoice?

    Whether you report VAT on a Cash basis or Accrual, transactions with the EC are always on an Accruals basis, so if you are expecting to see the report reflecting this invoice paid on 5th September, that might no be the case depending on when the invoice is dated.

    @MerlinAccounts_UK thanks for helping out on this!

  • STSecuritiesSTSecurities Member Posts: 8

    Hi Paul
    There are 3 invoices which I expect to appear on this return. They are dated 1 July 2019, 1 Aug 2019 and 1 September 2019. We are on quarterly reporting on a cash basis with HMRC.

    The invoice paid on 5 September was the 1 Aug 2019 invoice. In the quarter in cash terms the invoices for 1 July 2019 and 1 Aug 2019 have all been paid and accounted for accordingly in Wave with payment dates of 2 August 2019 and 5 September 2019.

    Does that help at all?
    Adrian

  • STSecuritiesSTSecurities Member Posts: 8

    Hi @PaulC
    There are 3 invoices which I expect to appear on this return. They are dated 1 July 2019, 1 Aug 2019 and 1 September 2019. We are on quarterly reporting on a cash basis with HMRC.

    The invoice paid on 5 September was the 1 Aug 2019 invoice. In the quarter in cash terms the invoices for 1 July 2019 and 1 Aug 2019 have all been paid and accounted for accordingly in Wave with payment dates of 2 August 2019 and 5 September 2019.

    Does that help at all?
    Adrian

  • ChelseaKChelseaK Administrator Posts: 264 admin

    @STSecurities Thanks for following up on this! I reached out to Paul and sounds like you two are already in conversation about this over DM.

    edited September 16, 2019
  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    @STSecurities @PaulC Did you get this resolved? Would you mind sharing what was causing the issue and what the solution was.

  • STSecuritiesSTSecurities Member Posts: 8

    @MerlinAccounts_UK Hi Andrew, no it isn't resolved as such as yet. There is a work around for it but the issue appears to be an underlying one with the data or something that the developers are looking at.

  • PaulCPaulC Administrator Posts: 94 admin

    @MerlinAccounts_UK Hi Andrew,
    Confirming what @STSecurities just said, we are still trying to determine the correct, full resolution to this.
    The net amounts calculated in the VAT100 report were confirmed to be correct. We believe the individual small differences in Lines 1 and 4 relate to an interaction between how Wave calculates taxes and how it handles gains and losses on foreign exchange. (The transactions on which tax is being calculated were denominated in Euros.)
    With @STSecurities' permission, we'll share when we have a complete resolution.

  • STSecuritiesSTSecurities Member Posts: 8

    Absolutely. Happy for the resolution to be shared.

  • VictapvVictapv Member Posts: 1

    Hey there. I have spend hours, trying to figure out the difference between the figures in VAT100 report and actual sales.
    In box 6. total sales £520.85 for the period 8/07/2019-8/07/2019 It is easier to figure out within one day.
    All net income for this day £ 104.17, all paid income for this period £114.17 Figures mаtch in all reports apart of VAT100.

    Would you help please!!!

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    @PaulC Hi Paul, would really love an update as to when, how, if the problem has been fixed please

  • AlexLAlexL Administrator Posts: 1,118 admin

    Hey @MerlinAccounts_UK . I've followed up with Paul and he's let me know that we don't have any updates at the moment. When we know more, we'll let you know.

    edited November 12, 2019

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