How do I deal with purchases from EU countries and V.A.T. reporting?

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This article will explain how to deal with purchases from outside the UK.

From January 1st 2021 the way purchases from outside the UK are treated on the VAT return is changing. Please ensure your Platinum version is dated 13th April 2021 or later. Click here for instructions on how to update your Platinum system.

See Preparing for Brexit with Platinum for more information.

More Information

If you are buying goods from outside the UK your suppliers need to be set up in a specific way.

Go to " Purchase Ledger Supplier File Maintenance Add or Edit Suppliers"

  • Search for the supplier and click [Edit].
  • Select the [Invoicing] tab.
  • Select their Country from the drop down menu.
    • The "EC Member?" flag to the right will default based on the country chosen.
  • Enter their "V.A.T. Reg" number if they have supplied it.
  • Remove the code from the "Currency" field unless you intend to use the currency conversion program, within Platinum. All transactions should be posted in your base currency e.g. GBP.
  • Check the "Default V.A.T. Rate" is correct. This will be defaulted based on the country you choose to enter.
From January 1st 2021 you may need to amend the default VAT Rate set against your suppliers.
  • Click [Done] and [Accept].
When posting your invoices you should continue to use the same process as usual and ensure you post them at the correct VAT rates. The VAT return will place the Nett amounts into Box 7. This article advises how to enter estimated/actual VAT as an adjustment to the VAT return if you are on Postponed VAT Accounting. This ensures the VAT is included in boxes 1,3 and 4.

See also

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