Morning everyone. I've just taken on a client whose customers are all UK-based, but the MD randomly decided a while back to sell some equipment to a business in Greece. Because this was out of the ordinary, I don't think the VAT was dealt with correctly, but I just wanted to check. They haven't charged any VAT, and they have the business's VAT number to support that, but it's gone into T9 in Sage - where should it go? I don't think this is right, because of course it doesn't appear on the VAT return, whereas I think it should appear in Box 8.
Secondly, should they have completed an EC Sales List? What happens if we do that now, will there be penalties?
Claire
The goods are correctly zero rated, as long as the customer's VAT number is shown on the Sales Invoice, and you hold adequate evidence of removal of the goods from the UK to Greece. You should also make the entries on the EC Sales List. You may get a penalty if the ECSL is submitted late.
Your VAT Return should show the sale in Boxes 6 and 8.
I can't help with Sage VAT codes, but it's not a 'reverse charge' transaction, it's a 'zero rated supply of goods to EC' transaction - presumably there is a VAT set up screen somewhere on Sage that you can go to to check which code that is?
