VAT posting question for Service in Germany

The invoice received from Mercedes benz for the service on one of our transport vans.

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A service from Mercedes Benz has been supplied on one of our vans.  We are a transport business operating in the uk.  Vat registered.

The invoice from Mercedes Benz in Germany has vat on it, and i would like to check how to post into sage 50.  Would i just post this invoice as T15 in sage which is Purchase of service from ROW - Reverse charge?  I believe that as a business in the UK you cannot claim back VAT from Germany since leaving the EU.

Please could you help me to make the correct posting.

Replies (4)

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RLI
By lionofludesch
23rd Dec 2023 16:40

I take it you mean German MWSt rather than UK VAT. No, you can't claim it back from HMRC. If you can claim it back at all, it will be from the German revenue authority.

Why was your van serviced in Germany?

Or was it?

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VAT
By Jason Croke
23rd Dec 2023 19:02

It's not T15 or reverse charge, just enter the gross amount as T0 probably easiest, that way the gross value goes to Box 7 and no VAT to reclaim.

You could never reclaim EU/foreign VAT on a UK VAT return, nothing to do with Brexit.

Presumably the van was serviced in Germany?

Thanks (2)
Replying to Jason Croke:
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By Bambinazz
28th Dec 2023 13:57

Hi
Thank you for the response.
Yes correct van was serviced in Germany. I am aware we cannot claim the VAT back in Germany, even via a third party who does the VAT reclaim, but I wanted to know how it should be treated in sage 50. I thought it should be shown on the input and output vat thus rendering it zero to claim back. Rather than the old way of T0.

But you have said that T0 is still ok to use within sage.

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By VATs-enough
29th Dec 2023 06:39

I would be checking if VAT was properly chargeable on a B2B supply under the general rules.

Germany do have some quirks within their VAT system, but possible that the invoice should have been o/scope when raised.

Failing that, 13th Directive reclaim.

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