Submitting VAT returns is an essential part of bookkeeping. Unfortunately, it can also be time-consuming and stressful. If you need assistance with VAT, Flow’s team of expert cloud accountants can help you incorporate KashFlow’s accounting software into your standard practices. Utilising KashFlow’s VAT features can automate the process, saving you time and money.
Here is a taster of KashFlow’s VAT capabilities:
EU VAT and digital services
The start of 2015 brought about new VAT legislation 2015. Any digital service (e.g. broadcasting, telecoms or anything delivered via electronic means) sold from the UK to customers in the EU is now subject to VAT charged at the rate of the client’s country.
HMRC brought in a new VAT scheme – MOSS or Mini One Stop Shop – for reporting VAT on digital services. KashFlow’s features fully support the new VAT MOSS scheme, so you can still submit your VAT MOSS return from the software.
You can set up MOSS in KashFlow:
- Select ‘VAT Settings’ from the ‘Settings’ menu.
- Tick the box under ‘Mini One Stop Shop (MOSS)’.
- Set your customer’s country on their address record.
- Create a sales code for digital services in ‘Sales Codes’ under the ‘Settings’ menu.
- Once you are set up with MOSS, you can run VAT MOSS reports and returns:
Before submitting a return, you will need to run a report. Do this by selecting ‘VAT MOSS Reports’ in the ‘General Reports’ menu.
- Enter the relevant period and select ‘Run Report’.
- Check the information is correct. For more details, click ‘Drilldown Report’.
- Click ‘Finalise’ then download the report to submit to HMRC.
Flat Rate Scheme
The Flat Rate Scheme (or FRS) is applicable if you pay a fixed amount of VAT to HMRC and cannot claim back VAT on business purchases. KashFlow gives you the option to allocate the Flat Rate Scheme as your VAT setting, so you don’t have to do the calculations manually. You can set this up as follows:
- Go to the ‘Settings’ menu.
- Select ‘VAT Settings’.
- Tick the ‘Flat Rate Scheme’ option.
Easier VAT returns with Flow
With KashFlow accounting software, you can make calculating your VAT returns faster and simpler. If you need some help in understanding how to file a VAT return or which VAT settings are relevant to your business, Flow’s team can guide you every step of the way. From initial training to answering any queries, we can help you use KashFlow to make VAT a piece of cake.