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Level 1

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

 
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Best answer July 24, 2019

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QuickBooks Team

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Hi julieatdallas

 

We understand exactly what you are referring to and agree that the wording maybe misleading in the Manage VAT rates and we will raise this to our developers. Using the 20%ECG when creating tan Expense/Bill will have the desired affect  +/- VAT at 20% to Box 2 & 4, +/- Net Purchase to Box 7 & 9.

View solution in original post

7 REPLIES 7
QuickBooks Team

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Hi julieatdallas

 

If you are purchasing goods from the EU you either use  20% ECG or 0% ECG, if you are purchasing services from the EU then use 0% ECS.

If you are unsure which ones to use then contact an accountant or HMRC.

Level 1

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Thank you but On one list from Quickbooks it says 20.0% ECG is for purchases then when I look on quickbooks manage rates it states that 20.0% ECG is for goods I supply. Which is correct as they contradict each other - one is wrong.
QuickBooks Team

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Hi julieatdallas

 

When you create an invoice for goods you supply to your customers you will not have the option to select 20%ECG.

Level 1

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Not sure you are getting what I am asking.  I have an invoice for goods I have purchased from Germany with no VAT charged to me as I have given them my VAT Code.  One Quickbook list on Tax Codes says use 20.0% ECG for Intra EU B2B PURCHASE, but when I enter my invoice and go to Manage Tax Codes it clearly states 20.0% ECG  European Commission goods standard rate.  Used for goods you SELL to someone in another EU country that are classed as standard rate in the UK.  Which is correct?

QuickBooks Team

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Hi julieatdallas

 

We understand exactly what you are referring to and agree that the wording maybe misleading in the Manage VAT rates and we will raise this to our developers. Using the 20%ECG when creating tan Expense/Bill will have the desired affect  +/- VAT at 20% to Box 2 & 4, +/- Net Purchase to Box 7 & 9.

View solution in original post

Level 1

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Hi,

Apologies if this has been covered elsewhere.

 

I have created a bill for purchases of goods from an EU country to sell in the UK (+VAT at 20%). The bill I have created does not have VAT on it as it is an intrastat transaction. From the descriptions it seems i should be using a Standard Reverse Charge rather than the 20% ECG?

Is this wrong? I have read the post and it seems to be saying that i should apply the 20% ECG code?

 

please can you clarify? thank you,

Moderator

Should I use 20% ECG for purchases of goods from Germany. When I go to Manage Rates this comes up as SUPPLIES but on website it says PURCHASES. Please help. Thank you

Hello @Newton Ftwr,

 

Let me help share information about the VAT codes you can choose for your purchase.

 

You can select 20% ECG as the VAT code of your item since you, as a customer will account for the VAT as if you are both the supplier and the recipient of the goods.

 

In addition, here's an article you can read to learn more about the common VAT codes you can use when creating a transaction and how they're posted in your tax return: Common VAT Codes

 

Lastly, you can also check and read through this helpful article for the things you need to prepare before and after submitting your tax return: Submit a VAT return in QuickBooks Online.

 

Let me know in the comment below if you have any other questions or start a new thread for your other concerns. Stay safe!