Hi @JohnC4, Thanks for your response. 

"The purchase transaction from the UK is €10 with 0%VAT added. To record this correctly, €2.30 (23%VAT of €10) needs to be added to both the T1 and the T2 line of the VAT3 return. This provides proper reporting to Revenue but has no cash effect.

So there is no VAT recorded on purchases for your T2 as you can't claim it back and no impact on T1 as its Sales only."

- how did you get €2.30% to go into both the T1 and the T2 line to cancel each out but be recorded? Surely if you record UK purchases as "inclusive of 0%" vat then €0 VAT will go into T2 and nothing will go into T1.

Thanks