Sage VAT codes - The Book-keepers Forum (UK)

Elaine R · Senior Member

Sage VAT codes

Cheshire · Master Book-keeper

hi Elaine
Have you imported Goods from Serbia or was the invoice for services?

Elaine R · Senior Member

Hi Joanne,

It's for a service. I've converted the invoice to GBP using ft.com exchange rates on the invoice date.

My next worry is how to pay the customer in euro's out of a GBP bank account.

Elaine

Amanda · Expert

Ring up the bank there is a way of doing it as I have a client who does it all the time, on the bank statement it will show as GBP even though the transaction will be in Euros. Also there will be a bank charge for this, I don't know the amount as it really depends on the bank.

Cheshire · Master Book-keeper

Hi Elaine
Ive only been involved in VAT on import of goods, but i did locate this from HMRC -

www.hmrc.gov.uk/vat/managing/international/imports/importing.htm There is a section for ''VAT on services received from overseas suppliers'' about 1/3rd of the way down the article - hope this helps.

I do invoices out for services and tend not to key the invoice until its gone through the Bank account - then I know the exact rate used and can just key the invoice at this amount. Although I appreciate this is no good if it needs to be included in the VAT return before it shows in the Bank account - at which point it is perfectly acceptable to use the FT exchange rates and then do any adjustments later through a forex nominal code - as Amanda says -dont forget to split out the charge - the Bank will always send an advice of the rate used and the charges.