Difference between revisions of "How to deal with sales to EU countries and V.A.T. reporting"

From Catalyst
Jump to: navigation, search
(Bulk update)
(Bulk update)
 
(6 intermediate revisions by 2 users not shown)
Line 1: Line 1:
 
== Summary ==
 
== Summary ==
−
This article will explain how to deal with Sales to EU Countries and how this will affect V.A.T. Reporting and specifically V.A.T Box 8.
+
This article will explain how to deal with Sales outside the UK.
 +
 
 +
{{Warning|text=From January 1st 2021 the way sales to customers 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.}}
 +
 
 +
See [[Preparing for Brexit with Platinum]] for more information.
  
 
== More Information ==
 
== More Information ==
−
If you are selling goods to EU Countries then your customers need to be set up in a specific way:
+
If you are selling goods to countries outside the UK then your customers need to be set up in a specific way:
−
*The [[How do I add a new country?|Country]] of the customer should be entered on the {{Tab|Invoicing}} tab of the {{Menu|Customer Properties}}.
 
−
*The EC member flag should however be set to {{DataValue|No}} ''unless'' the customer 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 customer.
 
  
−
The reason for this is that you only have to declare goods sold to EU countries if the customer is V.A.T. registered or you exceed the Distance Selling Threshold of that Country in a specific V.A.T Period or the previous three periods.
+
* [[How do I find a supplier?|Search]] for the customer and click {{Button|Edit}}.
 +
* Select the {{Tab|Invoicing}} tab.
 +
* Select their [[How do I add a new country?|Country]] from the drop down menu.
 +
** 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.
  
−
{{Tip|text=See [http://www.hmrc.gov.uk/vat/managing/returns-accounts/completing-returns.htm#6 HERE] for the HMRC explanation of Box 8 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.
  
−
{{Tip|text=See [http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf HERE] for Distance Selling Thresholds for EU Countries.}}
+
{{Information|text=All transactions will be produced in your base currency e.g. GBP although can be converted to the customer currency on printed documents. See [[Dealing with currency accounting in Platinum?]] for more information.}}
  
−
If you know or think you would exceed the threshold then please {{SupportContact}}.
+
* Check the customer {{DataPrompt|Default V.A.T. Rate}} is correct. This will be defaulted based on the country you choose to enter.
 +
 
 +
{{Tip|text=From January 1st 2021 you may need to amend the default VAT Rate set against your EC customers. Previously the VAT Rate would only change to Zero rated if you had the customer's VAT Registration number. See [[Preparing for Brexit with Platinum#Stage 2 - Customer Changes - VAT Rates and Export flag|this]] article for advice.}}
 +
 
 +
{{Note|text=Please ensure your Platinum system is dated 13.4.2021 or later. The Nett sales value will be posted to Box 6 of your [[How do I run the VAT 100 report?|VAT return]].}}
  
 
=== EC Sales Report ===
 
=== EC Sales Report ===
 +
If you need to produce an EC sales report please follow these steps.
 +
 
Go to {{Menu|Systems/Accounts|{{RP}}|Reports|Accounts Report Generator}}.
 
Go to {{Menu|Systems/Accounts|{{RP}}|Reports|Accounts Report Generator}}.
 
* Enter {{DataValue|EC}} and press {{KeyPress|ENTER}}.
 
* Enter {{DataValue|EC}} and press {{KeyPress|ENTER}}.
Line 32: Line 44:
 
* [[Dealing with currency accounting in Platinum?]]
 
* [[Dealing with currency accounting in Platinum?]]
 
* [[How do I reconcile foreign currency accounts?]]
 
* [[How do I reconcile foreign currency accounts?]]
 +
* [[Preparing for Brexit with Platinum]]
 +
* [[How do I run the VAT 100 report?]]
  
 
{{KB_Tags|v.a.t., vat, box 8, sales, selling, european, country, countries, europe, euro, currency, mtd, tax, digital}}
 
{{KB_Tags|v.a.t., vat, box 8, sales, selling, european, country, countries, europe, euro, currency, mtd, tax, digital}}
−
{{Hint}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}{{ZN_Admin}}
+
{{How}}{{Hint}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}{{ZN_Admin}}

Latest revision as of 05:29, 10 April 2021

Summary

This article will explain how to deal with Sales outside the UK.

From January 1st 2021 the way sales to customers 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 selling goods to countries outside the UK then your customers need to be set up in a specific way:

  • Search for the customer 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 will be produced in your base currency e.g. GBP although can be converted to the customer currency on printed documents. See Dealing with currency accounting in Platinum? for more information.
  • Check the customer "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 customers. Previously the VAT Rate would only change to Zero rated if you had the customer's VAT Registration number. See this article for advice.
Please ensure your Platinum system is dated 13.4.2021 or later. The Nett sales value will be posted to Box 6 of your VAT return.

EC Sales Report

If you need to produce an EC sales report please follow these steps.

Go to " Systems/Accounts Reports & Settings Reports Accounts Report Generator".

  • Enter 'EC' and press <Enter>.
  • Select the 'EC Sales Report' and click [Start].
  • Enter your date range and click [Start].
  • Click [Print] or select to "View report as"'Table'.
    • Press <Ctrl+P> and select [Excel] to output the results into an Excel file.
  • Click [Close] or press <Esc> to exit the report.
If you do not have this report please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page.

See also


Feedback
Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'
Keywords AND Misspellings
v.a.t., vat, box 8, sales, selling, european, country, countries, europe, euro, currency, mtd, tax, digital
Retrieved from "https://www.catalyst-uk-support.com/kb/index.php?title=How_to_deal_with_sales_to_EU_countries_and_V.A.T._reporting&oldid=42738"