VAT return box 2 - VAT on (EU) acquisitions
Wondering if you can help set the record straight on a EU acquisition VAT query I have.
Example: Business 'A' is UK VAT registered (and UK resident) and makes acquisitions from a VAT registered EU business 'B'. The goods would be standard rated (20.0%) in the UK, however as acquisition and meeting criteria is zero rated (0.0%) by business 'B' in accordance with EU directive.
In the above example, I believe you would:
1. Include the net value of the acquisition (zero-rated by 'B') in box 7 of the VAT return (inputs) = £100
2. Include the net value of the acquisition (zero-rated by 'B') in box 9 of the VAT return (acquisitions from EU countries) = £100
3. Include the VAT payable on the acquisitions based on the goods itself in box 2 (VAT due - but not yet paid by you - on goods that you buy from other EU countries) = £20 (as a standard rated good in the UK)
4. Include the VAT reclaimable on the acquisitions included in box 2 in box 4 of your VAT return (VAT reclaimable on inputs) = £20
Is the above treatment correct? If for arguements sake the acquisitions would have been zero-rated in the UK, would steps (3) and (4) be £0?
Can someone also explain exactly what is meant by "VAT due - but not yet paid by you - on goods that you buy from other EU countries". I'm confused by this as the VAT 'due' in netted to nil via box 2 and box 4 and 'but no yet paid by you' - if zero rated from 'B' there is nil VAT to pay (or VAT at 0.0%) - the statement makes little sense to me!
Thanks in advance for any advice!
- Auto enrolment 162 2
- starting a ltd company with intangible assets 111 3
- Registration as self-employed 163 2
- Clients have been told I'm working from home 1,054 15
- Corporation Tax Software 407 12
- VAT on commision and connected persons 90 1
- Partnership Tax Return £100 penalty-was a tax return due in this case? 676 18
- How to end partnership for HMRC 108 1
- First year's sole trader accounts and 2014/2015 tax return 164 1
- Electric Vehicle company car battery rental - how is it taxed? 117 4
- Regular Director bonus 455 11
- Careers advice - is it worth moving from an SME to a corporate? 154 1
- BrightPay 1,100 35
- HMRC Summons for £14k 547 7
- SA REFUND; DEFRAUDED BY UNKNOWN PARTY 372 5
- Footballers Testimonials Taxable? 1,126 17
- BIK for an electric car 173 2
- New Practice - Accounting Software 3,642 90
- How do I save face? 2,413 14
- Goodie bag 3,128 72
- Possible Partnership? 698
- Tax and accounting treatment on long lease granted from freehold 539
- Fuming! 523
- New Fangled Penalties 468
- Purchase of property freehold - capitalisation of costs 337
- Charity dissolution and newly merged charity 279
- Moving away from CCH software 268
- Outsource Data Entry 259
- Lenovo – Superfish & Komodia – is your PC vulnerable 259
- Do I need a US Tax Identification Number to complete W-8BEN-E? 210