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The Book-keepers Forum -> VAT, Payroll & Tax -> EU VAT questions
Post Info TOPIC: EU VAT questions
Cornflake


Member

Status: Offline
Posts: 7
Date: Tue Feb 14 13:21 2012
EU VAT questions
 

Hi everybody,

I am losing sleep over a couple of questions and I am afraid although everything seemed crystal clear previsouly, I might have got it wrong for a little while (hope not).

Would anyone be kind enough to let me know how they deal with these in term of VAT inputting please?

1) Buying services from a EU suppliers who is zero taxed in his own country.

Do you still enter the value of services purchased in box 9 and input a 20% vat equivalent in boxes 2 and 4?

2) For suppliers who issue invoices split at at a 3% rate (am thinking Virgin Media here) and 20% rate, do you treat the 20% part as a UK supplier invoice and the 3% part as a European supplier invoice (i.e. Eu acquisition)?

And for that 3% part, how do you calculate the VAT on EU acquisitions at a 20% rate?

 

Oh dear...

Thanks,

Cornflake



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fin6y


Member

Status: Offline
Posts: 24
Date: Tue Feb 14 16:36 2012
 

1) I am inclined to say that because the supplier is not VAT registered, there is no 'tax shift' to implicate as such, because even if they had been in the UK you wouldn't have been charged VAT - so I would only enter the transaction in Box 7 & 4.



2) I think that the term acquisition only relates to goods imported from other EU countries - and the example you'd given would be classed as a service.
I've not actually dealt with Virgin Media invoices specifically (as they would usually be private?), but it might be a good idea to contact HMRC to get an official answer on how to treat it.

Hope that helps, there is a handy e-mail form for sending questions to the Revenue here :- https://online.hmrc.gov.uk/shortforms/form/VATReg?dept-name=&sub-dept-name=&location=47&origin=http://www.hmrc.gov.uk.
They have always been very helpful, and quick at replying to me!



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Faye

Cornflake


Member

Status: Offline
Posts: 7
Date: Tue Feb 14 23:27 2012
 

Hi Faye,

Thanks for getting back to me and sorry about my very late reply.
Re 1), do you mean boxes 7 and 9?

Re 2), I have emailed them and we'll see...thanks for the pointer.

Thanks again,
C.

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YLB-HO


Senior Member

Status: Offline
Posts: 411
Date: Wed Feb 15 22:29 2012
 

Services purchased in the EU are treated the same as goods purchased in the EU. It has been since 1 January 2010. But Faye is correct about the supply you mention as the person does not charge VAT, because they are most like not VAT registered in their country.



-- Edited by YLB-HO on Wednesday 15th of February 2012 10:29:57 PM

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Frauke (FFA FIAB FFTA)

Tutor for the IAB Level 4 Diploma in Personal & Business Tax, & mentor for the yourlocalbook-keeper.co.uk network

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