My query is, VAT registered company in UK received invoice from French Company. Invoice (obviously in French) has Base 990,00 Taux 19,600% Montant 194,04
I presume the correct way to post to Sage is net 990.00 VAT code t8 VAT 194.04 total invoice 1184.04?
The invoice does display the FR registration number.
If a UK VAT registered business is selling to a French VAT reg business then as long as the UK business has the French businesses VAT number they don't need to charge VAT - does this not work the same the other way round?
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
You don't say what the invoice is for. The treatment will be different depending on whether it was for goods or services, and if services then place of supply of services rules should be considered - the treatment will vary depending on what services were supplied, and where.
For the purposes of this answer, I am assuming the invoice is for goods.
If the French supplier knew the UK customer's VAT number they should not have charged the VAT. They should have zero rated the invoice and displayed the UK VAT registration number on the invoice. When placing orders with suppliers in other EU member states, it is important to provide your UK VAT registration number and ask the supplier to zero rate the invoice. You might be able to persuade the French supplier to credit the invoice and issue a new zero rated invoice. There is no mechanism for claiming back the VAT on the UK VAT return.
Tax code T8 is meant for invoices which have been zero-rated in the above circumstances (assuming it is for goods and not services). Tax code T8 in Sage results in entries in Boxes 2,4,7 and 9 of the VAT return, and should only be applied if the invoice is zero rated under the EU VAT rules.
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Sheelagh Lyons Bookkeeping Clarity Making Bookkeeping Clearer
The answers I provide are meant as a general guide only and do not constitute advice.
Thank you for the replies, I can go ahead and post it correctly now. This company doesn't usually show the VAT on the invoice which is what threw me. I presume that it is just an error when they printed the invoice - and it is an invoice for goods not services.
