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

Summary

This article will explain how to deal with purchases from EU Countries and how this will affect V.A.T. Reporting and specifically V.A.T Box 9.

More Information

If you are buying goods from EU Countries then 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.
  • If supplied, this number is required in order for the V.A.T. report to correctly classify transactions involving this supplier.

The reason for this is that you only have to declare goods bought from EU countries if the supplier is V.A.T. registered.

See here for the HMRC explanation of Box 9 and what is to be entered.

• 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.

When you enter the V.A.T. number on a supplier who is set to EU 'Yes', the default V.A.T. rate will change from 'No Default' to 'Zero Rate'.

When you enter the invoice or credit note from the EU supplier, you can enter it with no V.A.T. under the "Zero Rate" line. The system will calculate automatically the VAT for inclusion on your VAT return in Box 2 and Box 4, and the nett value will end up in Box 9 as well as Box 7. You will also be able to enter the nett value of the zero rated items in the UK, if required. The notional VAT on this amount will be zero.

See also

• How do I add a new country?
• How to deal with sales to EU countries and V.A.T. reporting
• How do I set up currency translation?
• Dealing with currency accounting in Platinum?
• How do I reconcile foreign currency accounts?
• Posting purchase invoices

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Keywords AND Misspellings

v.a.t., vat, box 8, sales, selling, european, country, countries, europe, euro, currency, mtd, tax, digital, zero rate, ec supplier, ec purchases, box 2, box 4, box 7, box 9, ec supplies