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

Problem reported by Ralph Ruppert 9 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.

http://www.hmrc.gov.uk/vat/managing/international/imports/importing.htm#3

John,

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

Reply to this problem

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are