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Calculating UK VAT with EU Sales (Flat Rate) Help

Help with Calculating UK VAT with EU Sales (Flat Rate)

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Hello all,

I am VAT Flat Rate registered in the UK and sell goods to EU countries. My prices are all inclusive of 20% VAT as i do not reach any distance threasholds.  Can someone please confirm the best way to calculate my VAT to pay (7.5% Flat Rate) to HMRC and when the conversion takes place?  Do i calculate my 7.5% of gross total before i convert to GBP or convert first then calculate the VAT?  I hope that makes sense.

Many thanks in advance

Mark

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chips_at_mattersey
By Les Howard
26th Feb 2019 16:54

Convert all invoices/income to sterling, and then use the flat rate turnover.
(It is unusual for the FRS to work where you are selling cross-border. You have checked your arithmetic?)

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Replying to leshoward:
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By Mark Griffin
26th Feb 2019 17:24

leshoward wrote:

Convert all invoices/income to sterling, and then use the flat rate turnover.
(It is unusual for the FRS to work where you are selling cross-border. You have checked your arithmetic?)

Thanks for the reply. I sell through Amazon to non VAT registered customers in the EU as well as at home.

edit: Cross border sales accounts for a very small percentage of my overall sales and appreciate that if it was solely sales to the EU then FRS would be a bad choice.

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Psycho
By Wilson Philips
26th Feb 2019 20:16

Arithmetically it makes no difference whether you calculate 7.5% of the converted income or convert 7.5% of the Euro income.

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Replying to Wilson Philips:
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By Mark Griffin
26th Feb 2019 22:04

Thats a good point, thank you.

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