Different EU VAT rates

Pru1 · ‎May 02, 2020

Hi,

I have a client that has recently registered for VAT and has bills and travel receipts from the EU that have different VAT rates depending on the country. Can I simply add new VAT rates to Quickbooks and apply so that he can reclaim the tax? Eg. Apply a 21% VAT rate from The Netherlands to his bill? Is it that simple?

Thanks!

FritzF · ‎May 02, 2020

Thanks for getting back to us, @Pru1.

Since we're unable to advise as to what specific type of VAT rates to use on their supplier's bill or receipts, I highly recommend consulting this to HMRC for further guidance with this matter.

For future reference, consider checking out this article: Common VAT Codes.

Please let me know how it goes or if you have any other questions or concerns. I want to make sure everything is taken care of for you. Cheers!

View solution in original post

FritzF · ‎May 02, 2020

Thanks for dropping by the Community, @Pru1.

When charging tax to customers in the EU, you can use 20% Standard VAT if they're registered. If they're not VAT Registered company, you can use the 0% ECG or ECS codes so that the purchaser of your goods/services can account for VAT at their acquisition rate. However, I highly suggest reaching out to the HMRC or your accountant for further guidance.

Just in case, I'll add these articles for future reference:

Please leave a comment below if you have any other questions or concerns, and I'll get back to you as soon as possible. I'm always here to answer them. Have a great day!

Pru1 · ‎May 02, 2020

Hi @FritzF ,

No, that's not the issue, I'm all set up for my sales invoices.

How do I account for the VAT on his supplier's bills? For example he has been given a bill for €121 that includes VAT at 21%. He also has Subsistence receipts when travelling that include different VAT rates. He would like to claim back the VAT. I have a month's worth of bills from suppliers that include VAT, I assume because they weren't aware at the time that my client was VAT-registered.

Thanks,

Jude

FritzF · ‎May 02, 2020

Thanks for getting back to us, @Pru1.

Since we're unable to advise as to what specific type of VAT rates to use on their supplier's bill or receipts, I highly recommend consulting this to HMRC for further guidance with this matter.

For future reference, consider checking out this article: Common VAT Codes.

Please let me know how it goes or if you have any other questions or concerns. I want to make sure everything is taken care of for you. Cheers!

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