Hi everyone we work on a flat rate of 16.67% but how do l show this in my sales invoices as not letting me change it when l am in there
Hi,
Thank you for using the Community Hub.
Flat Rate VAT doesn’t affect the rates on invoices it only impinges on your liabilities to HMRC. Your day-to-day processing remains unchanged. VAT calculates at the standard, lower, exempt, zero rated and No VAT rates as normal. The flat rate percentage applies when you calculate your VAT Return. The guide linked below explains this fully.
Flat Rate VAT
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Regards
Andrew
SAGE UKI
Hello,
flat Rate VAT is a bit different from the standard VAT settings. It’s not something that you would typically apply directly to each invoice, as it’s more about how you calculate your VAT return, rather than the rate applied to individual transactions. When you're using Flat Rate VAT, you won’t adjust the VAT rate on each sales invoice manually. Instead, the system will use the Flat Rate percentage when calculating your VAT liability at the end of the period, during the VAT Return process.
You need to do:
1. Make sure you have the Flat Rate VAT scheme set up correctly in your Sage settings. This is where you specify the 16.67% rate.
2. For regular invoices, the standard VAT rules will apply to the individual items you sell.
3. When you’re submitting your VAT return, Sage will automatically apply the 16.67% rate for the flat rate calculation on your overall sales, as long as you’ve correctly set up your Flat Rate VAT scheme.
Basically, the system takes care of the application of the Flat Rate VAT percentage during the VAT Return, so you won’t need to manually adjust each invoice for that percentage.
Hope this clears things up
Hi,
Flat Rate VAT works differently from standard VAT rates. It impacts how your VAT return is calculated, not how VAT is shown on individual sales invoices. Here’s how it works and how to set it up in Sage Cloud Accounting:
Why the Flat Rate VAT Doesn’t Change Invoice Rates
Flat Rate VAT does not alter the VAT rates (e.g., 20%, 5%, 0%) shown on invoices. Instead, it applies a simplified percentage (16.67% in your case) to your gross sales when calculating your VAT liability for HMRC. The rates on your invoices remain standard as per the VAT rules for your goods or services.
Navigation and Workflow
Viewing or Adjusting VAT Returns
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