Our computer software support department have thrown a spanner in the works with regards to VAT due on EC acquisitions. I'm in the middle of doing our VAT return:
Now from my understanding you are meant to add 20% VAT on goods purchased from an EU VAT registered supplier. We don’t do that so everything comes in at 0% (we have never done it since I joined and I've not found out why?!).
Now because we have not claimed VAT on any EC purchases then would it mean that the rate for VAT Due on EC Acquisitions should in fact be 0%?
Our Computer software company are saying that the figure should remain 20% but I believe it should be 0%. I feel like this would make us worse off as the 20% rate on box 2 would decrease what we are owed back from HMRC. FYI - we are always entitled to a refund from HMRC as the majority of our goods are shipped abroad to foreign businesses.