Those that moved off FRS

[TheCyclingProgrammer]

Could you expand on this? Is this because they're providing it exc VAT because you gave them your VAT number?

AFAIK you should still be paying the VAT on it in your return as "EC Services" (freeagent term maybe)?
https://www.freeagent.com/support/kb...r-from-the-eu/

You are correct though it makes no difference to your VAT bill as the VAT is reclaimed under the reverse charge mechanism, even on the FRS.

[pr1]

You are correct though it makes no difference to your VAT bill as the VAT is reclaimed under the reverse charge mechanism, even on the FRS.

Ah ok.. so where does the VAT money come from? or does everything ultimately cancel itself out?

[Louisa@AardvarkAccounting]

It cancels out against one another. As effectively it goes in as a sale and then out again as a purchase, so the overall impact is NIL.

[BrilloPad]

It cancels out against one another. As effectively it goes in as a sale and then out again as a purchase, so the overall impact is NIL.

Ah ok.. so where does the VAT money come from? or does everything ultimately cancel itself out?

Except for the plebs who end up paying. As ever.

[TheCyclingProgrammer]

Ah ok.. so where does the VAT money come from? or does everything ultimately cancel itself out?

It's effectively a bookkeeping/reporting exercise in most cases (except for mostly exempt businesses who cannot reclaim VAT under the normal rules).