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Box 8 on a Vat Return

What should be included

I have just started a new job after working in Finance for 17 years.  I am not convinced they have been filling in the vat return correctly and wondered if anyone could clarify for me.  I have rang HMRC who agreed with me, but now i am doubting myself and them!  I have heard you can get a different answer depending on who you speak to at HMRC and they are giving their opinion.

The business sells on eBay and Amazon globally.  Box 8 on the vat return has only been used to record sales to EU customers that are Vat registered (couple of sales a month).

I believed that Box 8 should include ALL sales to EU customers regardless of their registration for vat (most customers are members of the public), or is it right to only include those that are businesses registered for vat.

I am setting up Sage Accounting as they prevously just used spreadsheets.  I have been testing November 18 data and was looking at the tax codes.  Sage has code T4 with a description of 'Sales of goods to VAT registered customers in EC', and i cannot find a tax code for 'Sales of goods to NON VAT registered customers in EC'.  To complicate further, when you see a list of Sage Tax codes in Sage Help, it refers to T4 as Sale of goods to customers in the EC.  No mention of whether they are vat registered or not.

Is anybody able to confirm the correct figures i should be using for Box 8?

Thanks in advance

Replies

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12th Dec 2018 11:48

Although this depends on distance sales limits, it's only sales to VAT registered businesses, ie the Zero rated ones, see 3.9 on:
https://www.gov.uk/guidance/how-to-fill-in-and-submit-your-vat-return-va...
Sales to non-registered "consumers" are treated as sales in UK with 20% VAT.

Thanks (1)
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By sambb
to Paul Scholes
12th Dec 2018 12:06

Thanks Paul

I have also discovered that they are over the distance selling threshold for Germany (€100k) and France (€35k) and therefore need to register in those countries.

I need to read up on this further as i have no experience in this area!

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to sambb
12th Dec 2018 12:12

sambb wrote:

I need to read up on this further as i have no experience in this area!

Or get professional advice, possibly from the company's accountants (I am assuming you are in-house, sorry if that's not the case)

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to sambb
12th Dec 2018 14:19

There are companies that can do this for you, have a look at Avalara and VATglobal.

Also worth mentioning that it’s all change 1 Jan 2021, when all consumer goods sales will require declaration in destination country but GOV will enable you to do it through its own One Stop Shop facility, currently used for electronic sales of services.

Fun times ahead!

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to Paul Scholes
12th Dec 2018 14:52

Paul Scholes wrote:

Also worth mentioning that it’s all change 1 Jan 2021, when all consumer goods sales will require declaration in destination country but GOV will enable you to do it through its own One Stop Shop facility, currently used for electronic sales of services.

Hi Paul,
Is that for all consumer sales or just when over the VAT limit in that country?Edit: looks like it is all sales as distance selling threshold is lost.
Also will that negate the necessity to be VAT registered in that country?
Thanks.
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to Wanderer
12th Dec 2018 17:10

Hi - yes, the idea is to simplify it, so the accounting software copes with the amount of VAT to charge on each country's sales and you then send a separate return to HMRC splitting them all down and sending them one sum, which they then split up and send on to each country's revenue service, so no need for you to register.

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to Paul Scholes
12th Dec 2018 17:15

Many thanks.

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to Paul Scholes
12th Dec 2018 17:19

Subject to Br**it?

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