Just a quick question on how to enter EU purchases which have vat included. I have purchased MS Office 365 and I forgot to add my vat number to my account until now so the first 2 invoices include vat.so it would seem to me that I cannot use the vat reverse charge method. Should I just enter as a whole value including vat and set as No VAT for now and then for future invoices that have the vat netted off use the reverse charge? The vat is not much so not a worry for these 2 invoices.
I would check with your accountant but that sounds correct to me. I think if you do not supply your VAT Reg Number they will charge VAT at the Irish rate as that’s where Microsoft are based.
I’m not entirely sure, although according to this article Microsoft invoice for Office 365 from Ireland.
When you buy Office 365 services in the European Union, this purchase is subject to the Value-Added Tax (VAT) rate in Ireland because the Microsoft Billing Entity is located there.
Hi Nick, I can confirm for 2 reasons, a I’ve recently purchases Office 365 (I’ve seen the invoice) and I’m an EU VAT accountant for my company. Microsoft sell to the UK from and Ireland registered company. They have an Irish VAT number. When you make a purchase and provide them with a VAT number for the UK they verify it and remove the VAT (reverse charge at 0 rate). The 2nd page of the printed invoice should show you this. In which case Microsoft Ireland should be set up as an EU supplier within QuickFile and the reverse charge selected. Hope that helps. Feel free to ask any questions. Thank you. Michael
Michael,
thanks. I’m not sure if they have changed this for everyone but my invoice is in GBP and is addressed from Luxembourg.
Microsoft Luxembourg Sàrl, 23-29, Rives de Clausen, L-2165 Luxembourg, Luxembourg
VAT ID: LU19878750
Not sure why we would get different supply addresses from them. As you said my next invoice should be less vat and I can use the reverse charge as I have supplied my vat number now.
Many thanks
Nick
As luck would have it they have just sent my next months invoice and it is from Microsoft Ireland but the have a GB vat number and have issued the invoice with 20% vat itemised. Even though they are based in Ireland I guess I treat as GB vat invoice as normal.