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How do I add a VAT rate to the drop down?


#1

I am trying to enter a purchase from a German company. The VAT rate is 7%. But the drop down only has 20%, 5% and No VAT.

How do I choose 7%?


#2

You don’t. You can’t claim back German VAT unless you’re registered for VAT in Germany, so you’d just have to put the VAT-inclusive price as the net, no VAT, and mark the purchase as out of scope for UK VAT.

The right way to handle these kinds of things in future depends what you’re purchasing and how. If you’re buying goods from a German supplier and having them shipped to the UK then they should invoice you without VAT if you give them your UK VAT number, then you record it at the relevant UK vat rate in QuickFile and select the “apply reverse charge” checkbox (which cancels out the VAT on the invoice and puts everything in the right boxes on your UK VAT return to treat it as an “EC acquisition”).

If you’re buying services from a German supplier then generally it’s the same principle, they invoice you at zero VAT and you account for it yourself using the “reverse charge” mechanism (which is similar but not quite the same as what the “apply reverse charge” tickbox does, which is confusing).

It’s really only stuff you purchased in Germany when visiting (as opposed to from Germany for delivery) where you should actually have to pay the German VAT.


Edit: this link explains the ins and outs in detail


#3

Hi Ian,

Thank you for your reply.

But I can’t see any option for "“Apply reverse charge”.
the only options I see in QuickFile are:
“Exempt” and “Out Of Scope”


#4

In order to see the “apply reverse charge” option the supplier has to be configured as “VAT registered in another EC member state”. The box appears at the top right along with the boxes for supplier reference, date, etc.

02

But you can only use this mechanism if you have given the supplier your UK VAT number and the invoice they have issued to you is zero-rated and states something like “Innergemeinschaftliche Lieferungen sind laut §6a UStG steuerfrei.” (intra-EU supplies are tax free under [relevant section of the German VAT law]).


#5

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