Hello there - I wonder if anyone can help me. I am having difficulty understanding where EU supplies would hit the VAT return.
It is my understanding that when purchase invoices from the EU have on the invoice that the reverse charge applies, you would enter the output tax in Box 2, the purchase tax in Box 4, net figure in Box 7 and 8 - I think that is correct?
When it is a normal receipt from any EU country - say a coffee bought in a French restaurant - which boxes would this affect in the VAT return.
I hope I am making sense and I would welcome any response!
The most important entries are in Boxes 2 and 4. You have assumed full input tax recovery, ie: that you are not Partially Exempt, and that the purchases are not put to any private or non-business use. If so, then the figure entered in Box 2 is also included in Box 4.
I would suggest the net figures go in boxes 6 and 7, not 7 and 8. HMRC Notice 700/12 provides some (unclear) guidance on this one.
