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EU VAT returns - tagging and recording


#1

Dear All,
I have just started registering for VAT in a few EU countries. They work for me is doing a company called “AVALARA”.
I had my first return to Spain in September.
I have as a proof return document created by AVALARA and transactions list (I sell on Amazon and they use Amazon reports)
I understand I shouldn’t include VAT from Spain in my UK return now
I have client " Amazon ES Sales" where I put all me Spanish sale with VAT
So what should I do now?
Should I keep my client and on return make Spanish adjustments (minus only Spanish VAT)?
or maybe create another client “Spanish VAT” and make invoice with minus VAT I paid? This would be best for me but what about income?
regards
Jack


#2

Hi @awariat

Manual adjustments would be the correct way to deal with this, or there is another method of using a separate nominal code.

You may find this post helpful, which explains how to deal with Dutch VAT in this case: VAT payment to Dutch government


#4

I pay Vat every 3 months and I record Spain sales every month.
I have “ES Sales” customer but could I create another customer to record Spain VAT liabilities?
1 I created new account “Spain VAT Liabilities” in on the Chart of Accounts
2. I have ES Sales customer and every month I record sales in Spain but now without VAT.
3. I created “ES VAT” client and I record it every 3 months with the proof Spanish vat return form like

Is it OK this way?


#5

Is it OK this way? Is it OK this way?


#6

Hi @awariat

From the outset, this looks fine to me. One thing to also consider, is project tags rather than individual suppliers and clients.

However, I’m not an accountant, so I would recommend seeking professional advice to ensure this is correct.