Indirect Tax

dizzyhorsedizzyhorse Feels At HomePosts: 49Registered
What is the difference between.... Export EC, Export Non EC, EC Members and Other EC Members, EU?

Comments

  • guinea pigguinea pig Trusted Regular Posts: 402Registered
    EU = European Union
    and I think that you will find that EC = European Community, which means the same.
    The exam refers to EU countries, and non-EU countries.
    I recommend that you go to the online practice assessment, where you can download the "Reference material for AAT assessment of Indirect Tax" and see page 16, Transactions outside the UK.
    EU exports are sales of good/services exported to EU countries, and are known as Despatches, the way they are treated depends on whether the customer is vat registered in their country, or not.
    Non EU exports are sales of good/services exported to non EU countries. As vat is a tax charged in the EU, these will be zero rated.
    The vat website www.hmrc.gov.uk also Business Link website are helpful.
    Hope this helps,
    GP
  • beckygboobeckygboo Just Joined Posts: 4Registered
    Indirect Tax Nightmare

    I have now failed this exam 3 times, I think it must be the Acquisition's and Imports and EU and EC thing its confusing me.

    How do you work out the VAT on Acquisition's??

    The Osborne Book does not explain this well personally and it is seriously showing. I am not the only person who is struggling to understand this? AM I?
  • crispycrispy Trusted Regular SouthamptonPosts: 454Registered
    Hello,

    Just for example say you had £ 100 worth of EC acquisitions for a period:

    VAT: £ 100 * 20% = £ 20

    On the VAT Return form:

    Box 2 = vat due from other EC countries £ 20
    Box 4 = Total of normal input VAT plus the £ 20
    Box 9 = Value of Acquisitions from other EC Countries £ 100
  • beckygboobeckygboo Just Joined Posts: 4Registered
    oh dear, why have I been working it out to be something completely different and I can see why now I failed cos my return would be also completely wrong too.

    OMG what a plonker. LOL

    Thanks Crispy
  • LubyLuby Feels At Home Posts: 51Registered
    ^Just remember to use the VAT percentage the exam tells you too ! I understand AAT have kept everything at 17.5% so its not necessarily the current vat rate on the exam. Always check :)
  • AAT Level 3AAT Level 3 Feels At Home Posts: 75Registered
    The practise exams don't seem to include EU aquisitions. I think in the data you are given look for the word aquisition and watch out for bad debts too these are added on to input VAT.
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