In 2014 when purchasing from EU (mostly Germany) our suppliers did not claim the VAT and the Quickfile system reported the purchase correctly. However we have recently started dealing with Microsoft Eire and they charge and collect (DD) VAT @ 23% but the QF system exempts teh VAT and then adds it as a payable on our VAT return. If I understand it correctly we are paying the VAT twice. Any advice?
Hi Archie,
This may help:
https://www.gov.uk/vat-refunds-for-uk-businesses-buying-from-other-eu-countries
If Microsoft are not zero rating their invoices to you and you are paying Irish VAT at 23%, you should be able to reclaim this on your UK VAT return. You can set the VAT rate at 23% on your purchase invoices. As 23% is not a standard UK rate you may need to add it to your account first in Account Settings >> Company Settings >> Advanced Features.
Hope that helps!
I moved a post to a new topic: How do I zero rate invoices for EC sales?