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!
- What is the status of "Whistleblowing" these days - do you get rewarded? 666 21
- Uncomfortable with some advertising Sift takes 494 15
- Do I need to pay my accountant 846 11
- Joining the flat rate scheme retrospectively 1,092 12
- LLP members transfer to limited companies. 100 1
- Audit 105 1
- carry back of gift aid 170 3
- Employee to move to Isle of Man 292 8
- Awkward IP 1,176 12
- What's in a name ? 959 8
- Straightforward email correspondence or PDF letter attached to blank email? 849 10
- Negligible value - JJB Sports 189 1
- Buying Microsoft's Surface Pro 3 555 11
- Is it possible to change a client's trading address for Vat purposes online 233 3
- Should everyone be entitled to a personal allowance 383 6
- Potentially dodgy client 410 3
- CIC Tax - what is trading? 561 28
- Entrepeneurs relief 460 18
- French Excise Duty - Help Please! 400 9
- Goodwill omitted from first years accounts 549 23
- CTA study material 785
- Anyone have clients that use Pay4Later to offer customers credit? 484
- Raiders of the Lost Tax File 425
- Employment related securities question 313
- AIM Stocks and IHT 290
- Expat pension contributions? 269
- Tax Relief for overseas employees 264
- Trust for Employee 247
- Service Charge Accountant Career Options 200
- IPP (International Pension Plan) income 153