I have a client using sage, vat qtr 01.07.15-30.09.15 cash accounting. There is an EC purchase invoice dated 06.08.15 for £23084 no vat. The vat code used is t8. The invoice isn't due to be paid until 30.10.15 so therefore I wouldn't be expecting it to turn up on the vat return. However sage has included it-box 2-£4616.80, box 4 included in purchase vat, box 7 included in purchases and box 9 £23084. Is this correct, I mean I know that the boxes are correct, but don't understand how it is included it when it hasn't yet been paid. Is it alright to submit the return, does it ultimately not matter since the vat is irrelevant, or have I got a glitch in the sage system.
Really hope that someone can understand this, as in I've rambled just a bit!
I think with EU stuff, it goes off invoice date regardless.. works that way with the reverse charge stuff. There's no VAT to pay anyway, so it doesn't affect your liability.. possibly designed that way so that the government can review our "ins" with the EU's "outs" on a consistent basis.
-- Edited by FoxAccountancyServices on Monday 26th of October 2015 08:57:25 PM
Thank-you so much for that, I know that it doesn't affect the vat liability, but I was concerned about submitting it without understanding how it happened incase something odd had happened with sage.
