VAT boxes for EU purchase against Business/Non Business income

VAT boxes for EU purchase against Business/Non...

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Hi

Can someone confirm my treatment of the following.:-

Goods are purchased is from Germany for the equivalent of £100 .  The customer supplies his VAT number to the German supplier who then zero rates the supply.

The goods are for used in the making of within scope taxable supplies but also spent partly from an outside the scope grant. lets say for the sake of example its some stationary and 50% is used to generate taxable income and 50% is applied to outside the scope income.

The customer calculates the VAT on £100 (£20)

Then using the standard method of partial recovery the VAT return would show:

Box 2 £20

Box 4 £10

a net credit to the vat account of £10

the balancing £10 being a debit to P+L expense as irrecoverable VAT.

Am I correct?

thanks

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