EU acquisitions

EU acquisitions

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Hi there

I wonder if any one could help me. I got purchase invoices from EU supliers and there is VAT listed. I am also VAT registered and using Sage Line 50 to process VAT returns. Is it alright to use T8 tax code on sage for the standard rated purchases from EU country? But it doesnot account for any VAT for the invoice as its rate is zero. Whereas we need to include VAT on purchases from EU member countries.

Many thanks

Sohail 

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By DMGbus
19th Aug 2014 13:20

Stop the EU VAT charge

When a UK VAT registered business acquires goods or services from another EU country it is necessary to provide the supplier with the UK VAT number and (apart from certain services) the alien VAT charge will go away / not appear and cease to be an issue.

So, provide the suppliers with your VAT number and ask them to reissue the invoices without the alien EU VAT charges.

Recommended reading - VAT notice 725 "The Single Market".

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