How do you adjust the vat return when you have received a payment from an EU country? i thought it would automatically add it to line 8

Hello A-webster5, 

Welcome to the Community page, 

On the invoice that has this vat on for EU for box 8 on, have you selected the right tax code? As it should automatically then box the tax to the taxes page and to the right boxes.  

Thank you for responding.

I created the invoice as normal and changed the vat to ECS 0.0% when i received the payment I matched them and thought that would be it but when i do the tax preview it shows 0.00 in box 8.

I'm missing a step somewhere, and as this is my first time invoicing and receiving a payment to another EU country im not surprised ive muddled it up somewhere.

Hello there, a-webster5,

You'll want to create a VAT-only transaction. Use the sales receipt, then the VAT code should be 0.0% ECG. This VAT code is for 0% EC Goods and will show on boxes 6 and 8.

Check out these articles for future reference:

• Set up and edit VAT settings, VAT codes, and VAT rates
• Common VAT Codes
• VAT: Getting Started

Stay in touch with me if you have other questions.

Thank you for your help.

I’m sure you can tell I’m completely confused as to how to get this right could you give me a from scratch process?

I can undo the transaction so the invoice is still showing unpaid and the payment is waiting to be matched and start again

Thank you very much, the correct amount is now showing in box 8.

Just to make sure My figures are all correct. Box 1 has the correct amount of vat, by not showing the EC amount. box 6 includes the box 8 figure showing all receipts uk and EC.

hopefully this is correct !