I am doing book keeping for a client, who has made sales to people/customers in the EU, they are not businesses, but individuals, I presume I need to show them in box 6, but what VAT Code do I use in sage?
Thanks for any help
-- Edited by ruthdw on Monday 4th of March 2013 05:45:10 PM
As the sales are made to individuals, and i presume that these are retail sales made to general public by ecommerce site, then this comes under normal UK VAT. You should have charged VAT on those invoices, same as how Tesco's charge VAT for general public while purchasing items. The company is liable to pay VAT and the invoice should be posted as T1 (or other appropriate code)
Only if the individuals are selfemployed and registered for VAT in their respective country, you can then post the invoice as T4, provided you have their VAT registration number, which sage automatically picks it up while preparing VAT return and would be shown in box 6 and box 8.
In short, for sales to individuals with in UK and EU, VAT should be charged as normal UK sales by the company and this VAT is liable to HMRC.
