FRS and invoicing client in India for services

[Clare@InTouch]

Hi Clare,

I disagree, the sale should be recorded in box 6 of the return. See section 3.7 of the link below:

HM Revenue & Customs

Martin

The link applies to the normal scheme, not the flat rate scheme, but I agree - I was skimming the original question and just thinking of the top part of the return. Teach me to post and drink tea at the same time!

[kevpuk]

Just leave them off entirely, they are outside the scope.

I disagree, the sale should be recorded in box 6 of the return. See section 3.7 of the link

LOL - Accountant Wars



Seriously, though, just goes to show that Hector's rules can be open to different interpretation!

[akz786]

Hi Clare,

I disagree, the sale should be recorded in box 6 of the return. See section 3.7 of the link below:

HM Revenue & Customs

Martin

This is what my accountant has said to add the invoice sales to box 6 but I can see the point of leaving it out - I mean we must have a definitive answers to this right?

[Martin at NixonWilliams]

You don't have to charge EU VAT or include the sale on your VAT Return.

Hi Clare,

I disagree, the sale should be recorded in box 6 of the return. See section 3.7 of the link below:

HM Revenue & Customs

Martin

[Clare@InTouch]

Just leave them off entirely, they are outside the scope.

Point 6.3 on the FRS booklet at HMRC: http://customs.hmrc.gov.uk/channelsP...ent#P261_24718

6.3 What income do I exclude from my flat rate turnover?
You exclude from your flat rate turnover:

private income, for example income from shares
bank interest
the proceeds from the sale of goods you own but which have not been used in your business
any sales of gold that are covered by the VAT Act, Section 55 - see Notice 701/21 Gold
non-business income and any supplies outside the scope of UK VAT, and
sales of capital expenditure goods on which you have claimed input tax.


And then here: http://www.hmrc.gov.uk/vat/managing/...s/services.htm

If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return.

[akz786]

Hi as stated above its not so clear on HMRC website as it keeps mentioning "goods" but I am now working on a project for a client in India which involves software development and testing.
My invoices have no VAT charge (although the client charges Service Tax)
Where do I put this value of (non-EU) Sales in the FRS boxes? or do I just exclude them?

Thanks
Akbar