A client receives and pays invoices in various currencies from suppliers within the UK.
The VAT guide (VAT700) makes it clear that the suppliers must show the sterling equivalents of the Net and VAT amounts on the VAT invoice.
What is apparently not mentioned is what the customer should do.
Does the customer need to record the sterling Net and VAT amounts from the invoice and use these on the VAT return? Or can he convert the currency amounts into sterling using the exchange rates that he uses for accounting purposes (provided that these comply with the provisions for acceptable currency conversion methods as detailed in VAT700)?
Having to record the VAT amounts separately in Sterling seems slightly onerous - is it really necessary? I have found one reference dating back to 1999 in VAT Notice 920 Para 2.2 to the need to do this for Euro invoices. Does this still apply? Is there a similar requirement for invoices in other currencies?
Any help on this would be much appreciated.