|
Hello, I have just taken on a new client who buys second-hand equipment to sell on, and his VAT is worked out using the margin scheme.
Until now he has been raising sales invoices using his own template and doing the accounts in an Excel spreadsheet. I am setting him up on Xero and am looking in to the best way to calculate the VAT.
Under the rules of the margin scheme, VAT is calculated on the profit made on the sale of the second-hand item and cannot be shown on a sales invoice. Although I have found a way of inputting the VAT element manually in to the sales invoice, I cannot find a way yet to create a sales invoice template that hides the VAT element entirely from the customer.
Does anyone have any experience with this? It seems to me that either my client has to continue to create sales invoices manually on his old software so that the customer doesn't see the Xero invoice which calculates the VAT, or he uses Xero for a sales invoice with no VAT included and I do a manual journal for the calculation?
I would appreciate any advice please, I want to get it right first time so that I don't waste either my time or my client's!
Thank you
Ros
|
