Hi. How do I allocate a supplier purchase invoice to a client sales invoice where I re-bill that purchase to my client plus my services?
The issue has arisen because I’m vat registered and so don’t pay vat on EU acquisitions. If my client is outside the UK/EU, then I don’t have to charge vat on that acquisition or my services. However, my vat return is wanting 20% of the EU acquisition because it presumably thinks I’ve billed the vat on.
Presumably allocating the EU purchase invoice to a non-EU sales invoice will solve the problem.