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Level 2

Which vat code do I use when posting a UK purchase invoice for which I have reclaimed the vat in France and expect a refund?

 
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Best answer January 24, 2020

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Level 6

Which vat code do I use when posting a UK purchase invoice for which I have reclaimed the vat in France and expect a refund?

Hi @emma-freeman 

There are all sorts of weird & (not so) wonder rules on place of supply, etc when it comes to services.

I think the 20.0% ECS code shown in the Common VAT Codes link is used for place of supply = UK.

 

Personally, I would make this as simple as possible.

You might want to run this past your accountant just to make sure but, since you're using QB to deal with UK accounts & UK VAT, I would use NO VAT code (or 0% code if you want the toll to show on your QB VAT reports).

Enter the full amounts (incl FR VAT) as these are the amounts you've paid out.

When you receive the FR refunds, enter those as credits as you would from any other supplier.

To avoid contras, I would even enter the refunds as though they were credits from the Toll Company (with a memo to explain they are actually FR VAT refunds).

 

My reasoning...

You need to enter the tolls & refunds into QB for tax/reporting purposes.

The transactions are outside the scope of UK VAT.

You are claiming the FR refunds outside of QB so, as far as your UK accounts are concerned, the FR TVA Monsieur is just another supplier.

 

It may be completely wrong ;-)  but I hope that helps.

View solution in original post

4 REPLIES 4
Level 6

Which vat code do I use when posting a UK purchase invoice for which I have reclaimed the vat in France and expect a refund?

Hi @emma-freeman 

I think you'll have to give a bit more detail.

 

You have an invoice from a UK supplier (UK VAT registered)?

Is the invoice for Goods or Services?

Are you in France?

Are you registered for VAT in France or UK?

Level 2

Which vat code do I use when posting a UK purchase invoice for which I have reclaimed the vat in France and expect a refund?

Yes indeed, there was limited space on the original submission form.

 

The invoice is UK supplier with UK vat code, cost is charged and paid in GBP, they also have a French TVA number and quote the amount of vat we can reclaim in France

It is service to pay french tolls

We are registered for VAT in UK but submit returns to reclaim the french vat on invoices such as these.

 

QuickBooks Team

Which vat code do I use when posting a UK purchase invoice for which I have reclaimed the vat in France and expect a refund?

Hello Emma-freeman,

 

Welcome to the Community.

 

We're not Qualified to advise what VAT codes to use. However please see link for Common vat codes for Quickbooks. This will show you what box it will hit on the VAT return.

 

I Hope it is of help. ^Becky

Level 6

Which vat code do I use when posting a UK purchase invoice for which I have reclaimed the vat in France and expect a refund?

Hi @emma-freeman 

There are all sorts of weird & (not so) wonder rules on place of supply, etc when it comes to services.

I think the 20.0% ECS code shown in the Common VAT Codes link is used for place of supply = UK.

 

Personally, I would make this as simple as possible.

You might want to run this past your accountant just to make sure but, since you're using QB to deal with UK accounts & UK VAT, I would use NO VAT code (or 0% code if you want the toll to show on your QB VAT reports).

Enter the full amounts (incl FR VAT) as these are the amounts you've paid out.

When you receive the FR refunds, enter those as credits as you would from any other supplier.

To avoid contras, I would even enter the refunds as though they were credits from the Toll Company (with a memo to explain they are actually FR VAT refunds).

 

My reasoning...

You need to enter the tolls & refunds into QB for tax/reporting purposes.

The transactions are outside the scope of UK VAT.

You are claiming the FR refunds outside of QB so, as far as your UK accounts are concerned, the FR TVA Monsieur is just another supplier.

 

It may be completely wrong ;-)  but I hope that helps.

View solution in original post