vat on good purchased from EU
mc25
Registered Posts: 232 Dedicated contributor 🦉
Hi,
I came accross a clients record purchasing stuff from EU country, the company in EU are VAT registered, recently the EU company issued an invoice and at the bottom of the invoice showed amount in GBP as the VAT amount included on goods purchased. How could you record this transaction on sage. Will it be usual EU transaction T8 or T7 or could you process it under T1 work the figures reverse and make sure the vat amount matches what they have indicated on the invoice.
Thanks
I came accross a clients record purchasing stuff from EU country, the company in EU are VAT registered, recently the EU company issued an invoice and at the bottom of the invoice showed amount in GBP as the VAT amount included on goods purchased. How could you record this transaction on sage. Will it be usual EU transaction T8 or T7 or could you process it under T1 work the figures reverse and make sure the vat amount matches what they have indicated on the invoice.
Thanks
0
Comments
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I'd use code T8, then Sage will pick it up as an EU transaction. If you enter the gross amount in the net column and then tick calc net Sage will work out the VAT for you, which should then match to the purchase invoice.0
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Thanks
Jan,
Thanks for your reply, I thought that was the case, but when i looked at the transaction on clients records it was actually posted as a transaction which took place in UK. I wonder why they had to show the VAT figure on the invoice while on some of the invoices it states, items exempt from VAT.
Thanks0 -
Invoices to the UK with Euros as the invoicing currency must also show their equivalent values in sterling under HMRC regulations. But this is only UK-UK invoices in non-GBP. I used to have the link for this somewhere but can no longer find it, however Google will help you on this.
Also, are you UK VAT registered? If not, fair enough but if so, then why was this not reverse charged or am I misunderstanding your question?0
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