This guide outlines why it is not possible in Artlogic for non-margin scheme items - like standard VAT items, insurance and shipping fees - to appear on margin scheme invoices.
Why is this not possible?
We have been informed by HMRC that margin scheme invoices should not contain other items outside of the margin scheme. Therefore, if you are selling a margin scheme item and wishing to bill your client for items with different tax statuses, you will have to create separate invoices.
They pointed us to two links for further guidance:
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https://www.gov.uk/vat-margin-schemes/keeping-records
For example: 'When you sell something you plan to claim for under a VAT margin scheme, you must give the buyer an invoice that includes: ... Total price - you must not show VAT separately' -
https://www.gov.uk/guidance/the-margin-and-global-accounting-scheme-vat-notice-718
For example: 'Optional extras charged to the buyer, including any insurance provided by a third party, and disbursements do not form part of the selling price, you should account for these separately outside the margin scheme. You can find more information about disbursements in section 25 of the VAT guide (VAT Notice 700). If the buyer is charged by another business, for example, for delivering the item, then that’s a separate supply of services between the courier and the buyer, it will not form part of your selling price.'
We take any developments to our database very seriously, especially when it comes to accounts and invoices sections of the database. We will only be able to make changes to the database if we are entirely confident that newly implemented features comply with the law.
See this article for how we handle feature requests.