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VAT - UK

UK company - EURO functional & Reporting CCY - What is HMRC's stance on this?

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Hi All

I have a client who is a UK based company who reports in EUR (Group mandate). It also seems that EURO is their functional CCY.  They also say they are trading in USD, GBP, CHF etc etc.

When it comes to the VAT return....what are the implications here. HMRC state VAT needs to be submitted in GBP with a audit tie back to each transaction showing the GBP value. Is this practise normal. Or, do all statutory items need to be dealt with in GBP?

 

Thanks in advance to anyone who can offer any advice. 

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By Ruddles
08th Nov 2018 11:11

VAT has to be accounted for in Sterling (with the Sterling equivalent of the VAT amount shown on all VAT invoices). End of.

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By GONKO
to Ruddles
08th Nov 2018 11:28

Thanks for the reply, Ruddles. Would this be normal, for a company to be EURO currency based and yet filing returns in GBP. Presumably, the statutory accounts will be in EURO too. Apologies my knowledge is a little light on this as I am not UK based, I am in Ireland.

Thanks again.

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By Ruddles
to GONKO
08th Nov 2018 12:18

It is not a question of what is normal, it is a question of what the legislation requires.

Accounts can be prepared in any currency you want, and invoices (including the VAT) can be raised in any currency. But it is a legal requirement that all VAT invoices (also) include the Sterling equivalent of the VAT amount and that VAT returns are prepared in Sterling.

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