Question about EU acquisitions

rafuk

Hi all

Just one thing I can't understand regarding EU acquisitions VAT control account.

Why is the EU acquisitions tax shown as the same figure in input and output tax sections of the Vat control account which eventually results in Nil? The book says that the business can claim the tax, but how is this possible if the Nil result does not affect really Vat Due.

Also, the same picture is with VAT Return form. The EU acquisitions tax is shown in Box 2 and also in Box 4 which which does not affect the result in Box 5...

Please explain:001_smile:

billdoor

They just cancel each other out, you 'pay' the tax but also 'claim it back' so, as you say, the effect is Nil.

I've no idea why this is as my book didn't say, I presume it's a monitoring exercise for HMRC.