Hello everyone, I am having some doubts on how to register an EU provider invoices.
We are both registered as intra-Community traders and have our EORI number, the products are VAT rate 0 In The UK.
Could someone please tell me how to acount it and if that amount should be included in box 9 of the VAT return.
Thank you very much.
I have checked with our accountant and we don’t directly support EORI in QuickFile. This shouldn’t stop you from using QuickFile to log your invoices but may require manual amendments to the VAT return.
You may find that exempting or reverse charging the VAT may work but I would recommend deferring to your accountant on this as there may well be additional adjustments needed before a VAT return can be filed.
This is how I made the invoice:
I have created the Supplier with Default VAT Rate 0%
But when I do the vat return report, box 9 does not show any amount. I do not know if it’s right or do I have to enter the amount of the invoice manually in that box.
Normally when you reverse charge you would put the original VAT amount in there (rather than 0%), it then gets added and deducted from the invoice.
Are you on cash accounting or accrual accounting for VAT? If you’re on cash accounting, has the invoice been paid in the VAT period you are reporting on.
Thanks for the help, Glenn
I’m on the cash accounting, but the problem I find is that we are both intra-Community traders and the original invoice was made without VAT.
Has your supplier applied a “reverse charge”? Typically an invoice which has been reverse charged will show the original VAT going on then back off.
The example I provided is specifically for reverse charging and will always result in a NET VAT amount of zero. The balance of any reverse charged supplier invoice will always appear in box 9 on the VAT return.
VAT on goods moving between Member States
No frontier controls exist between Member States and therefore VAT on goods traded between EU Member States is not collected at the internal frontier between tax jurisdictions.
Goods supplied between taxable persons (or VAT registered traders) are exempted with a right to deduct the input VAT (zero-rated) on despatch if they are sent to another Member States to a person who can give his VAT number in another Member State. This is known as an “intra-Community supply”. The VAT number can be checked using the VAT Information Exchange System (VIES).
The VAT due on the transaction is payable on acquisition of the goods by the taxable customer in the Member State where the goods arrive. This is known as “intra-Community acquisition”. The customer accounts for any VAT due in his normal VAT return at the rate in force in the country of destination.
The VAT rate for the I trade on is 0%, the invoice has been reverse charged but it dos not appear on the box 9,I have modified it manually. Is it ok?
It’s not appearing as you’re set to use the Flat Rate scheme. Are you actually on the Flat Rate scheme? I would doubt this as on Flat Rate you can’t ordinarily reclaim purchase VAT.
If you disable flat rate in the VAT settings and rerun the return it should add that purchase on without using an adjustment.