Does anyone have a guide for entering EU invoices to a UK company when they contain VAT recoverable from the EU using VT Accounts? I am having a lot of problems sorting this out.
I will go into detail of the problem once someone can help me as it is quite lengthy to write if no one can. Ideally I need a VT user in the same boat. I buy wines from France and self import.
Replies (9)
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If you are doing cross border EU VAT on acquisitions you will show the net amount due and the VAT will only appear on your VAT return.
You can't reclaim French VAT paid through a UK VAT return.
1. "..... so that I can purchase in France my self, recover VAT ....."
Who are you trying to recover this from? As has been said above you can't recover French VAT from UK HMRC.
2. The correct VT transactions for a NET purchase of EU goods of 1,000 are:-
Total 1,000.00
Input VAT 200.00
EC VAT payable 200.00
Net 1,000.00
Note the 'Input VAT' and 'EC VAT payable' are NOT the French VAT. I think that may be where your confusion lies.
VT is doing it correctly for EC Acquisitions.
If you need to claim French VAT you need to do this via another form, not your standard quarterly form - "VAT EU refunds".
https://www.gov.uk/guidance/vat-refunds-for-uk-businesses-buying-from-ot...
Wanderer
I also have to account for EC purchases and Sales on my VAT forms (boxes 6, 7, 8 & 9) and VT should do this for me automatically.
The only way to do this is to show the vat on the entry but mark it as an EC purchase and this is where the problem begins.
Are you a VT user as I really need advice from someone that uses VT for this activity as I think I understand what I should be doing in terms of my vat records and returns. It is just trying to get VT to do it without apparently having to fiddle it.
Yes I'm a VT user & the way I've explained it above is exactly what you should be doing within VT which will trundle through to your UK VAT returns.
There is no fiddle here, VT does the job with no hassle on goods, services is a little more tricky in VT & could be described as a little fiddly, but goods work just fine.