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EC VAT

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  • # 72605





Edited at 29 Jun 2011 08:31 AM GMT
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Jane O said:

“

Edited at 28 Jun 2011 09:51 AM GMT”




Edited at 28 Jun 2011 09:59 AM GMT
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Jane O said:

“Jane O said:
“

Edited at 28 Jun 2011 09:51 AM GMT”




Edited at 28 Jun 2011 09:59 AM GMT”

Hi not got the hang of posting on forum.

I need advice on EC VAT issues.
Client has purchased goods from FRance where the supplier did not charge VAT.  On reading the HMRC guidelines on acquistions - do I need to ente rthe converted amount with VAT showing and if so on Sage software what vat T code would I use to ensure the VAT return is correct?  The goods when sold to customers will show UK vat as they will be sold to individuals who are not vat registered and again what is required on vat return if goods sold to someone in EC country, and wat T code is required for vat return, would I need to show these sales on ECL

Jane
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  • # 72645

Hi Jane

You need to use the tax code T8 for this invoice.  Using T8 automatically puts it into box 2 and box 4 on the VAT return.  The VAT equivalent is added on in box 2 and then deducted in box 4 creating a net effect.  If the goods are sold to customers in the EC and they are VAT registered then tax code T4 needs to be used.  This is what is called 'business to business'.  If the goods are sold to customers in the EC and they are not VAT registered then tax code   T1 needs to be used as they need to be charged VAT.   This is called 'business to customer'.

If you mean EC Sales List by ECL then you wouldn't need to show the non-vat registered customers on.  You wouldn't be able to anyway as they would have no vat number to enter.

I hope that this is of some help.
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Jeanette said:

“Hi Jane

You need to use the tax code T8 for this invoice.  Using T8 automatically puts it into box 2 and box 4 on the VAT return.  The VAT equivalent is added on in box 2 and then deducted in box 4 creating a net effect.  If the goods are sold to customers in the EC and they are VAT registered then tax code T4 needs to be used.  This is what is called 'business to business'.  If the goods are sold to customers in the EC and they are not VAT registered then tax code   T1 needs to be used as they need to be charged VAT.   This is called 'business to customer'.

If you mean EC Sales List by ECL then you wouldn't need to show the non-vat registered customers on.  You wouldn't be able to anyway as they would have no vat number to enter.

I hope that this is of some help.”

Thanks Jeanette thats great- just define when i enter the invoice on sage do i breakdown vat and use T8 ie (802/6 = £133.67 vat goods £668.33 or do i just enter the £802.00 and code T8?  On my Sage configs I do not have a rate in T8 only description.  Do I need to put in vat rate here?

Thanks
Jane 
  • 33 posts
  • # 72662

Hi

You wouldn't take the VAT out of £802 as this is the net price of the goods.  VAT is added onto the net price.

You would enter £802 then use T8.  There should be no rate for T8.  It should have (depending on which version of Sage you are using) a Y in the 'in use column'. a N in the 'EC Sales column' and a Y in the EC purchases.

Sage will do all the rest for you.

Hope this is clear Smile
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