Difference between revisions of "How do I deal with purchases from EU countries and V.A.T. reporting?"

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{{Update}}
 
{{Update}}
 
== Summary ==
 
== Summary ==
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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.
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This article will explain how to deal with purchases from EU Countries.
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{{Warning|text=From January 1st 2021 the way purchases from EC suppliers are treated on the VAT return is changing. Please ensure your Platinum system is on the latest version. See [[Preparing for Brexit with Platinum]] for more information.}}
  
 
== More Information ==
 
== More Information ==
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** The {{DataPrompt|EC Member?}} flag to the right will default based on the country chosen.
 
** The {{DataPrompt|EC Member?}} flag to the right will default based on the country chosen.
 
* Enter their {{DataPrompt|V.A.T. Reg}} number if they have supplied it.
 
* Enter their {{DataPrompt|V.A.T. Reg}} number if they have supplied it.
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** If supplied, this number is required in order for the V.A.T. report to correctly classify transactions involving this supplier.
 
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{{Information|iconsize=0.8|text=The reason for this is that you only have to declare goods bought from EU countries if the supplier is V.A.T. registered.}}
 
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{{Tip|iconsize=0.8|text=See [https://www.gov.uk/government/publications/vat-notice-70012-filling-in-your-vat-return/vat-notice-70012-filling-in-your-vat-return#section3 here] for the HMRC explanation of Box 9 and what is to be entered.}}
 
  
 
* Remove the code from the {{DataPrompt|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.
 
* Remove the code from the {{DataPrompt|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.
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* Check the {{DataPrompt|Default V.A.T. Rate}} is correct.
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* Check the {{DataPrompt|Default V.A.T. Rate}} is correct. This will be defaulted based on the country you choose to enter.
  
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{{Information|text=When you enter the V.A.T. number on a supplier who is set to EU {{DataValue|Yes}}, the default V.A.T. rate will change from {{DataValue|No Default}} to {{DataValue|Zero Rate}}.}}
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{{Tip|text=From January 1st 2021 you may need to amend the default VAT Rate set against your EC suppliers. Previously the VAT Rate would only change to Zero rated if you had the Suppliers VAT Registration number.}}
  
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{{Note|text=When you enter the invoice or credit note from the EU supplier, you can enter it with no V.A.T. under the {{DataPrompt|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.}}
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{{Note|text=Changes to the way the VAT return deals with EC purchases are due to be implemented in Platinum during April 2021. Please see [[Preparing for Brexit with Platinum#Stage 4 - VAT Reporting|this]] article for more information}}
  
 
== See also ==
 
== See also ==
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* [[How do I reconcile foreign currency accounts?]]
 
* [[How do I reconcile foreign currency accounts?]]
 
* [[Posting purchase invoices]]
 
* [[Posting purchase invoices]]
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* [[Preparing for Brexit with Platinum]]
  
 
{{KB_Tags|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}}
 
{{KB_Tags|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}}
 
{{How}}{{Hint}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}{{ZN_Admin}}
 
{{How}}{{Hint}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}{{ZN_Admin}}

Revision as of 20:36, 11 February 2021

 This article or section is out of date and scheduled for a review.
Be aware: Content may not match the current version of Platinum.

Summary

This article will explain how to deal with purchases from EU Countries.

From January 1st 2021 the way purchases from EC suppliers are treated on the VAT return is changing. Please ensure your Platinum system is on the latest version. See Preparing for Brexit with Platinum for more information.

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.
  • 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 EC suppliers. Previously the VAT Rate would only change to Zero rated if you had the Suppliers VAT Registration number.
Changes to the way the VAT return deals with EC purchases are due to be implemented in Platinum during April 2021. Please see this article for more information

See also


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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
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