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!
- Can anyone recommend a fax send/receive service which I can use via email? 211 6
- MoneySoft 148 2
- Late RTI filing re SMP 79 1
- Best way to advise a limited company client 29 1
- VAT registration on digital services supplied outside UK within EU 66 3
- How to convert a pdf file to.. 655 10
- Payroll cessation and missing overtime 142 2
- Company assets 348 15
- Self assessment 141 1
- Self Help Accountancy Book for Client 132 2
- Claiming VAT 115 2
- Do you have to declare business expenditure on a personal credit card on your P11D? 1,107 15
- VAT on Acquisitions and Exempt Supplier 176 4
- Corporation tax on gains from one company to another 268 10
- HMRC website & Adobe Reader 267 5
- Basis period (2nd yr) for a partnership, please any suggestions would be really helpful 149 1
- Auto-enrolment - fact or fiction? 505 9
- Director resignation 737 21
- s75 ICTA88 Management expenses - idiots guide 1,801 30
- Additional information attached to accounts 165 1
- Straight line write off of Purchase Goodwill ??? 503
- Has anyone been affected by the RBS payment breakdown? 477
- Is there anything wrong with this? 278
- Do subcontractors on work for residential (student accomodation) construction 266
- Uncommercial property business 241
- Apple Employees - RSU vesting and tax witheld 204
- Registering online CWF1 183
- Accrued income scheme 179
- VAT - registration needed? 177
- Zoho software in small accounting and bookkeeping practice 175