Hi, I don't know if anyone can help but my client is dealing with an Australian company, but they are part of a global group, including the UK. My client has been specifically asked to invoice the Australian company. What about the vat aspect, as her accountant has mentioned that if they have a company in the UK, then that company should be invoiced and standard vat applied?
Where does the supply of goods end up? Is it something that gets sent to Australia? If the supply is to Australia then no vat so long as you export it directly. If it gets sent to the uk office and they then send to Australia it becomes vatable,. If the supply is in the uk then vat is charged.
The supply is to Australia and will get sent there directly, so thank-you very much Rob.
I shall ensure that proof of export is kept, thank-you Joanne.
Thank-s both for your help and everyone for reading
Thanks for the help on this, but now going a little further. The Australian customer has been set up on sage with the currency as Australian dollar-as they were to be invoiced that way. They have since paid us and sage won't let me put the bank receipt on against the customers as it says the customer has a different currency to the bank account. Would anyone know how I can get around this please?
Hi Nicola So did they pay you in Aussie dollars and the Bank converted it to sterling, or just in sterling?
Do you actually use the sage software to produce the invoice, or just do a manual input of the invoice to the 'customer' account?
If the latter, just do a dummy CN for the Aussie dollar invoice and match them in sage. Also amend the customer name to add the words 'dollar account only' and set up a new account for the same customer - marked 'sterling'.
Then set up a dummy invoice in the new sterling customer account as the gross (pre Bank charges) sterling equivalent. I usually add the currency amount as well so you can tie it in, along with the usual references. Key a credit note for any Bank charges relating to the money arriving (see the advice note from the Bank) and use the Bank charges nominal account when keying the Credit note. Then allocate the payment received from sterling Bank account as usual, but allocating it to the new invoice AND the credit note.
If the invoice is generated in sage, you COULD still do the same, making sure appropriate notes are added or there is a more long winded way - if you want the latter I will wait til you confirm that, rather than typing the whole thing out as I need to do some work
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thank-you. I'm not fully sure, I think they paid in Dollars and the bank converted-I shall have to check when I am next there. The invoice was generated in sage, I shall try the way that you have suggested. Again, thank-you very much. :)
