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

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== 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 outside the UK.
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{{Warning|text=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 [[Downloading a Platinum update|here]] for instructions on how to update your Platinum system.}}
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See [[Preparing for Brexit with Platinum]] for more information.
  
 
== More Information ==
 
== More Information ==
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If you are buying goods from EU Countries then your suppliers need to be set up in a specific way:
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If you are buying goods from outside the UK your suppliers need to be set up in a specific way.
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*The [[How do I Add a New Country?|Country]] of the supplier should be entered on the {{Tab|Invoicing}} Tab of the {{Menu|Supplier Properties}}.
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*The EC member flag should however be set to {{DataValue|No}} ''unless'' the supplier is V.A.T. Registered and has supplied their V.A.T. Number. In that case you should record this V.A.T. Number in their account properties, in order for the V.A.T. return to correctly classify transactions involving this supplier.
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Go to {{Menu|{{PL}}|Supplier File Maintenance|Add or Edit Suppliers}}
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* [[How do I find a supplier?|Search]] for the supplier and click {{Button|Edit}}.
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* Select the {{Tab|Invoicing}} tab.
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* Select their [[How do I add a new country?|Country]] from the drop down menu.
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** The {{DataPrompt|EC Member?}} flag to the right will default based on the country chosen.
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* Enter their {{DataPrompt|V.A.T. Reg}} number if they have supplied it.
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* 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. This will be defaulted based on the country you choose to enter.
  
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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|text=From January 1st 2021 you may need to amend the default VAT Rate set against your suppliers.}}
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{{Tip|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.}}  
 
  
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{{Information|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}}. If you change the EC Member from {{DataValue|No}} to {{DataValue|Yes}} after putting in the V.A.T. number, you will have to make this change manually.}}
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* Click {{Button|Done}} and {{Button|Accept}}.
  
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{{Note|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.}}
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{{Information|text=When [[Posting purchase invoices|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. [[How do I run the VAT 100 report?|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 ==
 
== See also ==
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* [[How do I Add a New Country?]]
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* [[How do I add a new country?]]
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* [[How to Deal with Sales to EU Countries and V.A.T. Reporting]]
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* [[How to deal with sales to EU countries and V.A.T. reporting]]
 
* [[How do I set up currency translation?]]
 
* [[How do I set up currency translation?]]
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* [[Dealing with Currency Accounting in Platinum?]]
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* [[Dealing with currency accounting in Platinum?]]
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* [[How do I Reconcile Foreign Currency Accounts?]]
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* [[How do I reconcile foreign currency accounts?]]
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* [[Posting purchase invoices]]
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* [[Preparing for Brexit with Platinum]]
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* [[How do I run the VAT 100 report?]]
  
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{{KB_Tags|V.A.T., VAT, BOX 8,Sales,Selling,European,Country,Countries,Europe,Euro, currency, MTD, tax, digital}}
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{{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}}
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{{Hint}} {{ZN_Accounts}} {{ZN_Admin}} {{KB_SL}} {{KB_PL}}
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{{How}}{{Hint}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}{{ZN_Admin}}

Latest revision as of 09:28, 9 April 2021

Summary

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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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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