Our business was recently registered for VAT. I received an invoice from our accountant which has a vatable element (i.e. Accounting fees) and a VAT-exempt element (companies House fee recharge)
How do I process this in Solar?
Thanks
Hi Adlina,
Assuming your business does not sell anything which is VAT-exempt (this
applies to the vast majority of VAT-registered businesses) then you treat
VAT-exempt purchases the same as Zero-rated purchases. In the case of
Accounting fees set the VAT rate on the purchase invoice to 20% and
Companies House fee to 0%.
When you make a payment which is 'outside the scope' of VAT (eg. when you
pay the VAT due to HMRC) in the Money Paid Out window click More Options >
VAT Treatment > Out of Scope.
