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EU purchases and VAT
We use Skype who are based in Luxemburg and their VAT rate is 15%, I can set this out under the 'Edit Explanation' within Banking when I upload the statement and manually change the VAT amount.
BUT how to I then get these transactions to appear in the relevant EC boxes on the VAT return?
BUT how to I then get these transactions to appear in the relevant EC boxes on the VAT return?
I’m unsure
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Inappropriate?Tony,
We don't currently break out EU acquisitions so as to calculate those boxes, sorry.
Theoretically you can arrange with Skype not to pay the VAT (see this article on the Skype Knowledgebase and this is how business-to-business transactions within the EU should happen - no VAT charged. Hence the way FreeAgent currently works.
We do plan in the future to include a 'EU VAT' checkbox on the relevant screens of FreeAgent to allow you to handle this properly. I can't say when just at the moment, though.
1 person says
this answers the question
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Inappropriate?Tony,
Are you paying Skype or receiving money from Skype? There is a reason why I'm asking this! -
Inappropriate?We are paying Skype for using the VoiP services. -
Inappropriate?Tony,
This is why everyone hates VAT:-
1. Only goods are shown in boxes 8 and 9 on the VAT return (even though it mentions supplies!)
2. You can't reclaim VAT paid in other EC countries on a UK VAT return.
I’m frustrated with VAT
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Inappropriate?In that case was are boxes 2 & 4 for? VAT relating to acquisitions for the EU...
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Inappropriate?Boxes 2 and 4 have the same criteria as boxes 8 and 9 i.e. they are for goods and related services.
Should have said this in previous post - sorry, familiarity breeds contempt!
I’m now even more frustrated with VAT.
EMPLOYEE
