Farming Levy

Question

I have a client who is a farmer on Cash accounting. 
 I have posted a sales invoice for crop sales that has zero rated VAT. Now the issue is the levy, when I put a minus on the same invoice with 20% VAT and match the bank money received. Sage accounting doesn't seem to like this and reverses everything on the VAT return. 
 I have then tried a sales credit note against the sales invoice and I get the same outcome. 
 How can I fix this? As I need to reclaim the VAT on the levy.

Aziz El Aswad · Accepted Answer

Hi Sophia 
 Thanks for using Sage Community Hub! 
 I'd try a couple of troubleshooting steps below to see if this solves the issue. 
 
 First delete the draft VAT return that you have for your client. Delete a VAT Return > 
 Then un-allocate the payment from the invoice. Unallocate Sales Transactions > 
 Re-allocate them together again. Allocating existing transactions > 
 
 Once you done this if you re-calculate the VAT return this will hopefully solve the issue and the figures will appear correct. 
 Let me know how you get on. 
 If this does solve your problem please select ' Verify Answer '. 
 Regards 
 Aziz Sage UKI

Sage Accounting UKI

Farming Levy

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