My client is setup in the UK to purchase services from the EU and are subject to Reverse Charge and EC Sales.
We have been trying to setup GP with Intrastat enabled as they are purely purchasing services and not goods so that it shows up correctly on their VAT return.
They are only raising Payables transactions Invoices and Credits but need it to populate the following 4 boxes on the VAT return:
|
Box 1 (output VAT)
Box 4 (input VAT)
Box 6 (value of the deemed supply)
Box 7 (purchase value) |
The problem is that no matter what we add to the VAT Daybook Report it will not show up on Box 4 and I am struggling with which Tax Detail ID needs to be added to which box then what do they need to enter on the transaction in the Tax so that it picks up correctly??
Can anyone help at all please? They are wanting to go live with this on the 1st October??
A previous post asked for the same advice below but there has been no answer surely someone else in the UK is setup correctly to account for purchasing services in the EU??
Both the supplier and the recipient. This requires that a single Invoice from a Creditor actually should generate both a Sales and Purchase event, as follows (again from the HRMC literature):
You simply credit your VAT account with an amount of output tax, calculated on the full value of the supply you have received, and at the same time debit your VAT account with the input tax to which you are entitled, in accordance with the normal rules.
You then include in the relevant boxes of your VAT return:
the amount of output tax in box 1 VAT due on sales;
the amount of input tax in box 4 VAT reclaimed
on purchases;
the full value of the supply in box 6 total value of sales; and
the full value of the supply in box 7 total value of purchases
So it would appear that from this one single purchase we need to generate both a Sales and Purchase VAT amount and net purchase amount, 4 separate entries on the VAT report.
