VAT Flat Rate vat due calculation

[herbiespringer]

greeetings

first ever posting here

a quick question if I may

I am on flat rate Vat Scheme I receive royalties from US based Company no vat applied (export)

do I include this zero rated Vat invoice in my calculation for vat due ALLl invoice totals x vat rate 9.5%

Yes or No would do

Thanks
Herbie

[mcflurry]

Yes.

As I understand it, the point is that all the vat liable and non-liable elements get put into a pot and a fixed rate charged. You can't then include/exclude additional items at a whim

[Eric Mc]

The Flat Rate scheme is fundamentally flawed and I fully expect that Brussels will one day knock it on the head.

There was an interesting article on the shortcomings of the scheme on Accountancyweb a few weeks ago.

Edited by Eric Mc on Tuesday 2nd January 13:12

[herbiespringer]

thank you for you replies

you have confirmed what i thought

have a prosperous new year

herbie

[mnewlyn]

No, I'm flat rate and I dont include anything outside the boundaries of VAT.

[herbiespringer]

err

I have just phoned HMCE and they said yes.

[Eric Mc]

Check out the details on the HMRC website. They give a pretty good set of worked examples and descriptions of what needs to be included and what should be excluded.

Contrary to its intent, the Flat Rate Scheme throws up all sorts of weird anomalies and inconsistencies and can become horrendouly complex.

[greenie]

What a government attempt to simplfy small business red tape becoming complex? Surely not.

[herbiespringer]

I have read the relevant notices. I will include all invoices in calculation. No doubt VAT inspectors will be round now that I have flagged myself up by phoning.

end

thanks

herbie