Skip to main content
A
ableng
May 16, 2020
Question

VAT on EU Purchaes

  • May 16, 2020
  • 1 reply
  • 0 views

Hi All,

 

 

I hope you don't mind help me out. I hope its not a hard one.  We are UK based VAT registered company all of our EU suppliers Zero Rate our purchases under the Intra-Community B2B Scheme. On the odd occasion we need to buy goods across the counter in the EU (small one-off purchases such as fuel or small materials), which result in us being charged the EU VAT. 

 

Is it correct posting the total value of the receipt with NO VAT. I think this is correct but just want a little re-assurance. Its my understanding the EU vat charged to us cannot be reclaimed on the return and I don't think there is any other way we should be showing this. 

 

 

Many Thanks

Aiden

1 reply

paul72
paul72
May 16, 2020
@ableng wrote:

... Its my understanding the EU vat charged to us cannot be reclaimed on the return and I don't think there is any other way we should be showing this. 

 

Afternoon Aiden.

 

I'm sure you're right here.  My understanding is that you would have to be VAT-registered in that country to claim back the VAT for items bought/used there.

There's also probably something in the VAT regulations that mean the goods still have to cross a border to be zero-rated (reverse charged).

 

@ableng wrote:

...Is it correct posting the total value of the receipt with NO VAT.

Personally, I'd use Z=0% for this because NO VAT shows nothing on the VAT returns & I prefer to have sales/purchases on VAT reports tallying with turnover-type reports.

 

You're talking about fairly small amounts & the VAT codes are only used inside QB (individual transactions don't get sent to the VATman) so, as long as you aren't trying to claim back VAT you aren't due to, it isn't going to cause much of an issue either way.

 

Hope this helps.

Terms & ConditionsAccessibility statement