Just needing some help, a client has sold some goods to EU, no VAT has been charged as have the VAT number from the customer etc. client has quoted the reverse charge. What are the entries I need to make on the VAT return. The goods that were sold were purchased from a UK supplier and VAT has been reclaimed, is this correct? Would I post the sales invoice using a T4 tax code so that it shows in box 6 & 8 of the VAT return?? Confused!
You appear to be using Sage based on the 'T4' reference. Always a sensible idea to mention the software in use.
That aside, yes - assuming your tax codes are set to the usual defaults, use T4 (net whatever it is, tax value nil).
You will need to start filling in a Value Added Tax EC Sales List (VAT 101) on a quarterly basis. I'm not sure now whether you have to actively register or if the first one is sent automatically when HMRC receive a VAT return with something in box 8 - I don't remember registering for the one I do, but you should probably ring them and check, just in case.
Like the normal VAT return, the EC sales list can be submitted electronically from within Sage - though HMRC still seem to send the paper versions out.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
