cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

VAT on EU invoices

Hello,

I am trying to charge 20% tax ECG to a customer in the EU but I am not getting the ECG or ECS options in my crop down menu on the invoice, why is this?

Thanks

Solved
Best answer 09-12-2018

Accepted Solutions
QuickBooks Team

Re: VAT on EU invoices

Hi HotovoUK,

 

Thanks for taking the time to post on the QuickBooks UK Community Page, I hope you'll take full advantage of these pages on your own QuickBooks Journey.

 

I'm going to direct you to this link https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroa My entire understanding of VAT on exports abroad is found from that article, i'll elaborate what i know at the moment.

 

My understanding of charging tax on customers in the EU is that you use 20% Standard VAT for any customer who is not VAT Registered and if 20% S is normally used for the same sale to a UK Customer. When however, you're dealing with a VAT Registered company you'd use the 0% ECG or ECS codes so that the purchaser of your goods/services can account for VAT at their own acquisition rate. 

 

If you're unsure of anything i've told you, you can always call HMRC and inquire with them, but I'd reach out to your accountant for an answer.

 

You're asking the question in the right place, there are some Accountants users and Community hosts alongside other users who can help too.

 

Thanks,

3 REPLIES 3
QuickBooks Team

Re: VAT on EU invoices

Hi HotovoUK,

 

Thanks for taking the time to post on the QuickBooks UK Community Page, I hope you'll take full advantage of these pages on your own QuickBooks Journey.

 

I'm going to direct you to this link https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroa My entire understanding of VAT on exports abroad is found from that article, i'll elaborate what i know at the moment.

 

My understanding of charging tax on customers in the EU is that you use 20% Standard VAT for any customer who is not VAT Registered and if 20% S is normally used for the same sale to a UK Customer. When however, you're dealing with a VAT Registered company you'd use the 0% ECG or ECS codes so that the purchaser of your goods/services can account for VAT at their own acquisition rate. 

 

If you're unsure of anything i've told you, you can always call HMRC and inquire with them, but I'd reach out to your accountant for an answer.

 

You're asking the question in the right place, there are some Accountants users and Community hosts alongside other users who can help too.

 

Thanks,

Not applicable

Re: VAT on EU invoices

Hi James

I was interested to read your reply as I have a similar query.

My company is selling goods to an EU to a customer who is not VAT registered.

HMRC and you have said that UK VAT should be charged and delared on the sale.

The entries on the VAT return should be

Box 1 The VAT amount

Box 6 the net sale amount

Box 8 the value of goods supplied to other member states

I cannot see a VAT code that will do this.

Intuit support suggested I ask HMRC!!

Thank for any help.

Anonymous
Not applicable

Re: VAT on EU invoices

Hi Victor90,

 

Thank you for contacting the Community.

 

If you use the standard 20% VAT code this will hit Box 1 and Box 6 on your return for sales. It will not however hit box 8. 0.0%ECG will hit boxes 6 and 8 for sales. At the moment we do not have a code that will hit boxes 1,6 and 8 at the same time.

 

As my colleague mentioned I would recommend to visit HMRC's website or give them a call to fully understand which VAT code to use and when whilst dealing with EU sales.

 

Thanks, Carly. :)