ICAEW.com works better with JavaScript enabled.
Exclusive content
Access to our exclusive resources is for specific groups of students, users, members and subscribers.
Q: My client is on FRS and they are supplying general rule services to UK business customers but also to EU and ROW business customers so some are outside the scope (OTS) supplies. Should these be included in the turnover figure when working out their VAT due using their FRS %? Should these OTS supplies be included at Box 6 of their VAT Return? Also when checking at the anniversary to see if they are still eligible to use the scheme, should these OTS amounts included in the turnover figure then?

A: Do not include OTS sales in flat rate turnover when applying your Flat Rate Percentage to work out the VAT due - see Notice 733 6.3.

Include these supplies in Box 6 of your VAT return – see Notice 700/12 3.7.

Total income for checking whether still eligible to use the scheme should include your OTS supplies - see Notice 733 12.2 (a).

Disclaimer

These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.

About Markel Tax

Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250