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Sam-Felton97
Level 1

Staying in an EU country for work, what vat rate do I use to record this expense?

Traveling and staying in Denmark, Denmark's vat rate is 25%. What vat rate do I use to record this expense in QuickBooks?

2 REPLIES 2
John C
QuickBooks Team

Staying in an EU country for work, what vat rate do I use to record this expense?

Hi Sam-Felton97 We're not able to provide any advice on what VAT code should be used. We've provided a link that informs you what codes are available and you could choose, there may also be a qualified Community member who reads this post and will be able to provide you with some advice. https://quickbooks.intuit.com/learn-support/en-uk/value-added-tax/common-vat-codes/00/239529

paul72
Level 8

Staying in an EU country for work, what vat rate do I use to record this expense?

Hi @Sam-Felton97 

 

You cannot reclaim VAT paid in a third country from HMRC - you can understand that they tend to be a bit twitchy about paying other country's bills!

 

You might be able to reclaim via the DK VAT via the EU VAT Refund System or 13th Directive Process.  See https://www.gov.uk/government/publications/accounting-for-vat-on-goods-moving-between-great-britain-... for details.

Unless it's a significant amount, this looks like it might be more trouble than it's worth.

 

Enter the 100% & 25% as separate line items in QBO under the same Category (both with Z=0% or Exempt VAT).

If/when you receive the refund, enter as a Bank Deposit under the same Category - again Z=0% or Exempt.  This will simply cancel the original expense line item.

 

If you don't receive the refund, or choose not to claim it, the DK VAT is counted as an Expense.

 

Hope this helps.

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