Question asked by Jonathan 9 years ago
If you invoice a customer in the UK in, say, US Dollars, and there is VAT payable, HMRC require that the invoice also shows the Nett value in GBP, and the VAT value in GBP, along with the exchange rate used.
Clearbooks doesn't seem to know that this is required.
As far as I'm concerned the rules still follow those set out in sections 16.3.1 & 16.4 of VAT Notice 700. From memory these are similar to the rules adopted by most EU countries in which only the VAT needs to be shown in the local currency, however they also usually require that sum to be analysed by VAT rate as well.
Best answerThis was partly discussed here last week https://secure.clearbooks.co.uk/community/questions/12404/foreign-currency-invoicing
Since the net/VAT/gross are already currently displayed in GBP I can only assume you're referring to the exchange rate part which I wasn't aware of in all honestly.
Would you mind linking me to the guidance just so i've got it to hand? To the best of my knowledge it's only the net and VAT that need be shown in GBP, nothing else.
As far as I'm concerned the rules still follow those set out in sections 16.3.1 & 16.4 of VAT Notice 700. From memory these are similar to the rules adopted by most EU countries in which only the VAT needs to be shown in the local currency, however they also usually require that sum to be analysed by VAT rate as well.
Best answerOK, agreed, exchange rate not essential but I've always been advised that it's a good idea. Anyway, showing the Sterling equivalent on each line as Clearbooks does looks messy and unprofessional - better just to have a line or two underneath the gross figure showing the VAT analysis.
Incidentally, I think Xero does it - not that means I prefer it as a package.
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