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. 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.

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 make this change manually.

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.

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?

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Keywords AND Misspellings

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