VAT incurred in other EU countries - how do I log this?

parchedpeas

I've made business purchases on tour in other EU countries and I've been charged the VAT on these. I am VAT registered.

How do I log this in my accounts? Do I put the whole amount in and ignore the VAT rate? Or do I have to find out the VAT rate for each country and each item?

THanks in advance.

martindow

You should send your VAT number to each company and they will then invoice you for the nett amount with no local VAT. This only works if goods are sent by post or carrier as the seller has to be able to prove the export.

If you went there and carried things back with you I think you might be stuck with foreign VAT. I'm not sure how or if that can be reclaimed. You certainly cannot enter it as if it were UK VAT.

parchedpeas

So I just enter them as a cost and 'ignore' the VAT then? I kind of figured that but just wanted to check. Do I declare that I paid this VAT at all?

Thanks for your help.

martindow

If you have made purchases of stock abroad it might be worth contacting the companies with your UK VAT number and see if they will reinvoice without charging VAT and refund your overpayment. As I said, if you brought the items back in your luggage they may refuse to do this. I imagine the rules are the same across the EC and they should also be able to provide evidence that the goods have been exported - tricky if they last saw you walking out of their door!

If it is an expense of your trip like meals out or a hotel bill paid abroad you put the gross cost in as a total figure including the local VAT. There is no VAT reclaimable so zero for UK VAT. I am not sure what the situation would be if you paid for a hotel in advance via a UK company. I assume that would include UK VAT which you could account for normally.