Import service

Question asked by Pete 2 years ago

I have imported services, one from US and one from Germany. These are distribution companies for digital distribution , ie a charge for submitting audio files to iTunes, Apple Music, Spotify etc. (all of whom you must go through such an approved aggregator service.)

I was wondering how to explain these for bank imports.

The US one obviously has no VAT, the German one has 0% VAT.

So on my explanation for both I have put 0% VAT and treatments as Services Imported - Reverse Charge

Both have gone into Cost of Sales.

Is this correct? Thanks

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3 Replies

Hi Pete,

So for both you would select services imported, that is correct. As for the rate, I believe you would select whatever the rate would have been had this have been a UK supply. (I believe this is 20%). I would advise checking with an accountant, however, just to ensure all is correct.

All the best,

Mohamed.

Best answer
2 years ago

Thanks Mohamed, this makes sense (and I have discussed with my accountant), however as soon as you select the VAT treatment services imported , the only VAT rate available is 0%. ie the 20% VAT rate option dis no longer available in the drop down.

2 years ago

Hi Pete,

That's fine. The system applies the 20% amount on the return, but the rate selected on the invoice is in fact 0% as standard.

All the best,

Mohamed.

2 years ago

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