I run a UK based digital advertising business and we trade a lot outside the UK.
I trade in USD and GBP. Default currency is set to USD but I also process domestic transactions in GBP.
When I printing a VAT calculation worksheet, I’ve just realised that although the worksheet shows the numbers in GBP with a £ sign next to them, the actual figures are pulled through in USD.
Therefore, when I submitted my last return for a £35k refund, the 35k amount was actually a USD amount and I should have submitted a return for something in the region of £27.7k.
Fortunately, I also found that I missed off some purchase invoices which brings the refund back to the amount I’ve actually reclaimed. So no over reclaim but glad I found it when I did or it could have got out of hand.
Anyway, I wondered if I’ve set this up wrong or if there’s a way of producing a VAT worksheet that spits out the correct figures in GBP or will just have to do a manual conversion every quarter in order to ensure I reclaim the correct amount?