Vat & eu

sarahwilson

We have just started buying and selling things in the EU, Southern Ireland for sales and France, Germany and Denmark for purchases. All our purchases are zero rated except for France and thats because its for exhibitions we are actually doing in France so we have to reclaim from the French VAT office.

What I am actually looking for is a bit of background on how this all works on the VAT return. If you read my other threads you will see I can't ask my brick wall, sorry manager, and judging from the debacle we had at last month end I suspect she doesn't know:001_smile:

If we have zero rated EU purchases do they go into the total purchases figure or not? If they do go on the VAT return where do they go? Sorry if this all sounds inane but if someone can explain to me how it works I would be very grateful.

Rozzi Rainbow

I would include all purchases in box 7, and then specify how much of that was EU purchases in box 9. Same for sales with boxes 6 and 8.
Also you will need to 'pay' the VAT due on the zero rated purchases by putting the amount in box 2, and also reclaim it by including it in box 4.
This probably sounds really complicated when you're not used to doing it - perhaps someone has a better way of explaining it? I rarely do this at work, I'm just remembering it from the Reports and Returns unit I took last year!

sarahwilson

Thanks Rozzi that sounds perfect, at least I can look at a return now and make some sense of it.:thumbup: