My Sales Tax Report reads £0.00
stonelynkorganics
Member Posts: 4
Hello there,
after having input hundreds of purchases subject to VAT since my business opened last March, and having only now registered for VAT in the UK, I am disappointed to find that my Sales Tax Report feature doesn't seem to be working. The report simply reads £0.00. I seem to remember this not being the case near the beginning of my business, say 9 months ago, but now the function seems not to work at all. It seems I may have to manually calculate all of my VAT expenditure for the last 11 months manually which will be a big and arduous task as you can imagine.
Could you explain why this might be, or what I may be missing, or if there is some manual way to override this functionality and calculate my TAX costs a different way?
Many thanks
Comments
Hi
Re backdating VAT claims from pre registration periods, you can only claim for assets (incl stock) held as at date of registration (so long as purchased within 3 years) and on services supplied in the 6 months prior - you cannot claim for goods and services consumed prior to registration, so be extremely careful what you attempt to claim on your first VAT Return.
Regarding the tax report issue, I presume you have been inputting the VAT values of the relevant qualifying transactions (see first para) when you entered the transaction values? Not entirely sure why you would be getting a zero to be honest. You have selected the correct reporting period? Does a balance for sales tax not show on the balance sheet?
Perhaps you could share some screen shots?
Hi Andrew,
thank you for your helpful reply.
First of all, I wasn't aware of the limitations of which I can claim VAT back, so thank you for informing me of that. Just to check if my understanding is correct; for purchases which remain held as an asset, e.g. timber used to build a shed, I can claim back VAT, but purchases of items which were then consumed, e.g. plastic bags for packaging produce which is sold, I cannot? What about compost; it is consumed in that I've used it on the garden but it is still a valuable asset held in the garden, arguably. What counts as consumed? What about petrol for my machines?
Indeed I have been inputting that VAT values on all VATable purchases, and I have ensured that the reporting period is correct. There's no mention of Sales Tax on my balance sheet.
I wonder if it has anything to do with introducing a new sales tax, which I did mid-way through the year which may have confused the system. I introduced a 5% sales tax which is the VAT charged on petrol. Might this have caused a problem with the software?
I've just discovered the setting in Wave for saying whether your tax is recoverable or not. Both taxes I use are set as nonrecoverable, which is wrong but I see now too late to change. Could that be why it won't show me how much I have spent on tax?
Is the shed a business asset? Used wholly and exclusively for the business?
but purchases of items which were then consumed, e.g. plastic bags for packaging produce which is sold, I cannot?
If the sale took place prior to VAT registration you cannot claim the VAT back
What about compost; it is consumed in that I've used it on the garden but it is still a valuable asset held in the garden, arguably.
How is your garden a business asset?
What counts as consumed?
You've used it up before you became VAT registered.
What about petrol for my machines?
_After you are registered? Of course _
Think you may have cleared this point looking at your sebsequent post