Eu acquisitions on VAT control account


I am studying the VAT control accounts and I have a question that I hope somebody can answer...

Why there is the same VAT on EU acquisitions on the VAT deductible: input tax column and the VAT payable: output tax on my exercises?

Shouldn´t they be different as they are different in reality in 99.5% of the cases?

Many thanks!,



  • CeeJaySix
    CeeJaySix Registered Posts: 645
    No; you don't pay the foreign VAT, you pay the UK VAT due when you import the item. This is effectively a paper exercise only, as you can reclaim the input VAT on the same return that you declare the acquisition tax as being due.

    Likewise you do not charge VAT on sales to EU VAT-registered customers; they will account for the VAT when they import the goods in their own country.
  • Kkadijat
    Kkadijat Registered Posts: 28
    You don't pay the aquisition VAT BUT, you need to charge yourself ie include it in BOX 2 of VAT RETURN and also include it in VAT TO BE RECLAIMED in BOX 4 .

    Aquisition is purchases from other member of EU

    In a short term, you don't pay aquisition VAT but you still need to account for it.

    And likewise you do not charge VAT on DESPATCH- Selling to other EU member, they will do the same as you did if you make an aquisition.

    EXPORT and IMPORT- You do not account for VAT on both as this will be settled at the PORT by the IMPORTER in both cases ie, if you IMPORT, you settle the VAT at the port as an IMPORTER and if you EXPORT, the buyer at the other end will settle the VAT at the port as an IMPORTER.

    BUT you have to STILL INCLUDE IT IN YOUR BOX 6 for total sale and BOX 7 for total purchases.
  • Kkadijat
    Kkadijat Registered Posts: 28
    And also note:
    Purchases from other EU member is not an IMPORT but AQUISITION and sales to them is DISPARTCH.
    Purchases from outside EU is an IMPORT and sales to them is an EXPORT. So don't get confused.
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