Hello there - I wonder if anyone can help me? I am helping a friend out with her bookkeeping and she had a purchase invoice from a VAT registered Irish supplier. When she put this on Sage, she put it on with the VAT code T7. She has just ran the VAT return and the figure came out in Box 9 of the VAT return.
Am I right in thinking that the VAT element has to be put into Box 2, then that same VAT element has to be put into Box 4. The net figure of the purchase invoice in Box 9 also has to go into the purchase figure of Box 7?
If I am right, why when you use T7 in Sage does this not automatically do if for you?
Also she files her VAT returns through Sage, so if Sage does not do this for you, how do you do adjustments so that you can file your VAT through Sage and straight to HMRC?
I hope I am making sense!! Would welcome any replies!
How you treat invoices from within the EU depends first on whether the recipient is VAT registered in the UK. I assume that this is the case.
If so, then the customer must provide her UK VAT number to the Irish supplier, so that they do not charge VAT. This is generally coded T2 in Sage, as it creates the entries for Box 2 and Box 4.
Of course, there are all sorts of variations; e.g: if your client is Partially Exempt, or puts the goods/services to private use.
Do respond or PM me.
