Purchase Bills from suppliers appear in Box 1 VAT due on Sales in error - why?

Problem reported by Ralph Ruppert 7 years ago

Why do Purchase Bills starting with PUR0000 appear in the VAT sales list i.e. end up in box 1 'vat due in this period on sales' when these are bills for acquistions?.... I had a number of these which all were 0% zero rated bills receiveived from EU suppliers charging 0% VAT

2 Replies

Hi Ralph,

The system is most likely applying the reverse charge rule to your bills. If you select a VAT treatment as Services from EU Supplier the bill will be displayed in boxes 1 and 4 with the net VAT result between the two as 0 in box 5. The reverse charge rule will also be applied to bills with the VAT treatment as Goods from EU Supplier, however the bill will appear in boxes 2 and 4.



this explains it. You are correct. Purchases in question did indeed relate to Services provided by EU suppliers billing with 0% VAT. Thank you for clarification. Ralph

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