Amazon Eu Reverse charge - goods

[neilpercy]

Hello All,

I’m trying to get my head around Amazon Eu purchases and the way it deals with Reverse Charge.

It seems the Amazon Eu Sarl charges the full amount to my credit card and then refunds the vat portion, so my credit card shows a payment and a refund (it has taken me a while to work out what these positive amounts on my card were about!!)

I can input the receipt as a payment with the reverse charge OK (although not sure how to do this directly from the ‘Receipt Hub’?), the purchase shows up with the correct pre-VAT figure, but trying to allocate the payment and refund amounts on my card is proving problematic.

Lets say its a goods total of £120. Amazon Eu Sarl charges my card £120 and refunds £20 (German VAT 20%)

• If I allocate the £120 charge on my card to the amazon purchase I am left with £20 pre-payment in the Amazon Eu Sarl supplier account.

• If I then allocate the £20 refund to the Amazon Eu Sarl supplier account it deducts £20 from the purchase, which is now incorrect, and still shows a £20 credit on the supplier account !!

alternatively -

• If I allocate the £120 charge on my card to the Amazon Eu Sarl supplier account and then try and add the refund before the purchase has been assigned i get a message -

Invoices with items posted to more than one nominal account will not appear here. For such cases a manual credit note will need to be applied.
No qualifying purchases could be found to refund against. Make sure the corresponding purchase has been logged before you attempt to process this refund.

I’ve tried creating credit note from the original purchase but am now completely stuck about what amount the original purchase note should be for - £100 or £120 - and how this may or may not mess up the correct allocation of amounts in the VAT return boxes !?!?!?

I could just delete the refund amount from my card, I’m not a Ltd. company so shouldn’t be an issue?, but then the payment to my card doesn’t tally!?

Help please…

Thanks

neil

[ian_roberts]

The way I’d do it is:

• create the purchase record in QuickFile as normal, for the net amount, with UK VAT added on and “apply reverse charge” ticked (i.e. treat as an EU acquisition)
• when the £120 payment goes out, tag it as “payment to a supplier”, “pay down multiple invoices”, and select the £100 purchase - the remaining £20 will show as a prepayment on the supplier’s control panel
• when the £20 comes back in, go to the payment (the easiest route is to click the “tagged” button where you tagged the original £120 and click the link on the word “This Payment”) and use the “refund balance” button at the top. This will create a new pre-tagged £20 money in on your bank account, you can delete the untagged duplicate.

The point is that the £20 isn’t a credit against the £100 purchase, it’s just the return of an overpayment. Presumably they do it this way because the rule is that they’re not supposed to invoice you without German VAT until they have proof from their courier that the goods have left Germany.

[neilpercy]

Thank you Ian for yet another helpful and informative answer - I would never have found the “refund balance” button!

I’ve got it all sorted now after several hours going round in circles, not helped by Amazon taking one amount on behalf of three different suppliers in one go, all of whom had a different vat status!

Got their in the end, thanks once again,

neil