Custom VAT rate not showing for supplier purchase

I have created a new supplier, based in Austria, where the VAT level is 13% which I have set as the default in their settings.

However, when I create a new Purchase, I do not have the option of the 13% VAT rate, just the usual 20/5/No VAT.


Hi @Neil_Freshwater

Have you got the new rate set up in your account settings? This can be found by going to Account Settings >> Advanced Features

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Hello. Thanks for coming back to me. Yes I have set to 13%.

Apologies I actually hadn’t done that. I had set it up in the client’s account, but not in my own account settings :slight_smile: Thank you.

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No problem! Glad to hear this sorted it for you!

Just a note of caution - because it’s a different rate/from outside the UK, just take care with this on your VAT return. If you’re unsure, double check with an accountant to ensure it’s accounted for correctly.

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Unless you’re registered in Austria for Austrian VAT this is almost certainly the wrong way to record it. The right way depends on a number of factors, it’s probably best speaking to your accountant for clarification of what you need to record, then come back here if you need advice on how to record that in QuickFile.

If the supplier knows you’re VAT registered in the UK and you’ve given them your UK VAT number then they should be invoicing you at zero VAT rather than 13%, and you account for VAT at the UK rate using one if two mechanisms depending whether you’re buying goods or services.

According to HMRC:

"You may have to pay VAT on goods and services bought for your business in an EU country. If you’re registered for VAT in the UK you can use the VAT refund scheme to reclaim the VAT you’ve paid in the EU country you’re claiming from if:

  • you are not, cannot be, or do not have to be VAT registered in that EU country
  • you do not have a place of business or other residence there
  • you do not make any supplies there, unless:
    • they’re transport services for the international carriage of goods
    • the person you’re supplying pays VAT on them"

Yes, there’s a separate scheme you can use to reclaim VAT on things that you bought in (as opposed to from) an EU country, but that doesn’t operate through your UK VAT return so you shouldn’t record the foreign VAT in QuickFile in the same way you would record UK VAT. If you record a purchase in QuickFile with VAT in the VAT column, QuickFile will attempt to reclaim that VAT via box 4 of your UK VAT return, which is wrong for VAT you incurred at non-UK rates.

What is it that you have purchased, is it expenses you’ve incurred while in Austria, goods you’ve bought from an Austrian supplier and had shipped to the UK, or services provided to you in the UK by an Austrian supplier? I presume by the HMRC text you quoted that you’re not yourself registered for Austrian MwSt in Austria?

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