I have a restaurant client who I also have taken on doing the bookkeeping for. They sometimes purchase stock (food and drink) from other EU countries. Some of their purchases have VAT and some don't. Is somebody able to tell me how this should be posted on Sage 50 to ensure it is correctly treated when raising the VAT return? Is there a specific code to use? And does the same code need using whether there is any VAT or not on the purchase?
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EU VAT
Hi
Purchases from most EU countries should be Zero rated, but there are complex rules.
In sage you can use T5 which should be set up as Zero VAT, you can check this in your settings, configuration, tax code tab.
The suppliers that have charged VAT, it is worth contacting them and giving them your UK VAT registration and then they may be able to zero rate supplies.
Hope this helps
EU VAT can't be reclaimed
Quote your VAT number and get it Zero rated. T20 I believe is the code you should then use for the Reverse Charge.