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:

• The Country of the supplier should be entered on the [Invoicing] Tab of the " Supplier Properties".
• The EC member flag should however be set to 'No' unless the supplier is V.A.T. Registered and has supplied their V.A.T. Number.

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.

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', if you change the EC Member from 'No' to 'Yes' after putting in the V.A.T. number you will have to manually make this change.

See also

• How do I Add a New Country?
• How to Deal with Sales to EU Countries and V.A.T. Reporting

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Keywords AND Misspellings

V.A.T., VAT, BOX 9,Purchasing,Suppliers,European,Country,Countries,Europe,Euro