I understand that but if I show the Irish Vat figure as a reverse charge it can appear in box 2 and then again in box 4 would this then not cancel each other out and the total vat paid would still be correct?
No it wouldnât - you can only use the box 2 mechanism if the supplier invoiced you without charging Irish VAT in the first place. For a normal purchase from a UK supplier you pay the VAT to the supplier and then claim it back from HMRC in box 4. For an EC acquisition you donât pay any VAT to the foreign supplier, but instead you âpayâ the appropriate amount of UK VAT in box 2 and âreclaimâ the same in box 4 (which seems a bit pointless but makes sense when you consider partial exemption rules for businesses who canât reclaim the full amount). In your situation you have already paid Irish VAT to the Irish supplier so if you want to claim it back you have to claim it from the Irish tax authorities, not from the UK HMRC (Refunds of VAT for UK businesses buying in EU countries - GOV.UK).
Non-UK VAT has no place on a UK VAT return.
Ok I think I have it right now if I just enter the invoice with 0%vat and then tick out of scope it puts it in neither box 2 or 4.
Thatâs correct, and if you do want to reclaim the Irish VAT from Ireland then you could use one of the methods I suggested above (two line purchase record or Euro bank account) to track the Irish VAT on your balance sheet until you receive the repayment. (If you donât intend to reclaim it at all then just put the gross total including the Irish VAT as the net amount on your purchase record, with 0% VAT and out of scope)
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