Would it be possible to create another VAT rate e.g. 'OS' for out of scope items? Thus when entering a purchase invoice with both personal and business items, the personal items could be coded to OS (VAT zero). This total could then be deducted on the VAT return to give the correct input total.
At the moment the only way of achieving this is to enter the invoice twice, once for the business items and one for the personal items.
Hi Pam,
Thanks for your feedback - I can see that having to enter two purchase invoices is not ideal. Having an extra 'OS' rate in the VAT rate drop-down would allow you to enter just one purchase invoice, but it would add an extra level of complexity for people who are not familiar with the different types of VAT treatment. Our aim is to keep things as simple as possible for beginners, so we want to avoid adding an extra option to the VAT drop-list. However, there may be other alternatives - we will note this area as an option for future improvement.
Regards,
