Anyone know about VAT Book keeping?

10 replies
Found 7th Jul
Hello. Hoping someone in the HDUK community have a little knowledge of VAT book keeping

If I sell a product to a UK Customer at £ 45.00. The VAT is £ 7.50 so net amount is £ 37.50
This also applies if I sell the same product to a consumer in Europe - the sums are the same as in the UK.

So my excel spread sheet will look-like

1/5/2017 - Mr Smith - Net: £ 37.50 / Vat £ 7.50 / Gross £ 45.00
1/5/2017 - Mr Jones - Net £ 37.50 / Vat £ 7.50 / Gross £ 45.00
and so on

However, if I sell the same £ 45.00 product to outside the EU - (example USA). It should be zero rated. So should the "column" where the VAT (£ 7.50) should go - just be "0"?

Mr USA - Net £ 45.00 / Vat £ 0 / Gross £ 45.00

Please dont send me the link to HMRC - I have already read it countless times- but typical HMRC, it does not tell you how to "set it up" on a spread-sheet

Thanks

10 Comments

As far as I can remember you would charge an EU customer £37.50 but it's then up to you (and them) to declare the £7.50 on your VAT return.

Wouldn't you just put £37.50 in net, £0.00 in vat, and £37.50 in gross?

I'm not a specialist in VAT but I believe if it is an export outwith the EU you would rate it outside the scope. So you would show 0 for the VAT. You would then only put it on the vat return in(if my memory is correct) section 6 but not anywhere else.

You need evidence that the good was exported and you should keep this for the usual time periods.

The rules are slightly different I think if you are providing a service rather than a physical good(I've never dealt with this personally) If it is a service to a non business customer then I think VAT would be charged depending on the circumstances.

So EU also zero rated but VAT accounted for on return not on customer invoice.

cdm22

Wouldn't you just put £37.50 in net, £0.00 in vat, and £37.50 in gross?



This is how you would do it, or you are charging them more than you intended.

Spenfica

So EU also zero rated but VAT accounted for on return not on customer … So EU also zero rated but VAT accounted for on return not on customer invoice.



Yes exactly, you wouldn't put VAT on the sales invoice but you would still account for the VAT as the other side will when they treat it as a purchase invoice if it is within the EU.

£37.50 net £0 Vat (zero rated)

This relates to goods, not some services.

The Net figure could be what ever you want it to be really, but there is zero VAT.

Export records have to be kept for 6 years if I remember correctly.

Assuming you, or your Company is VAT registered within the UK, & that the goods being sold are not zero/reduced-rated, VAT exempt, or outside of the scope of the UK VAT system (such as items from a personal collection), & also that you are not in the building trade...

peter_griffen

...This also applies if I sell the same product to a consumer in Europe - … ...This also applies if I sell the same product to a consumer in Europe - the sums are the same as in the UK...



Only if the item has the same rate of VAT applied to the sale to the European customer.
If the European customer is VAT registered within their own country, you can charge 0% VAT on the sale from the UK.

The method of transport to the European customer will have bearing on the VAT rate that can be charged (if any).

peter_griffen

...However, if I sell the same £ 45.00 product to outside the EU - … ...However, if I sell the same £ 45.00 product to outside the EU - (example USA). It should be zero rated. So should the "column" where the VAT (£ 7.50) should go - just be "0"?Mr USA - Net £ 45.00 / Vat £ 0 / Gross £ 45.00



Yes; assuming you are charging the same price for the item to the US customer. They would pay import taxes upon receipt.

peter_griffen

Please dont send me the link to HMRC - I have already read it countless … Please dont send me the link to HMRC - I have already read it countless times- but typical HMRC, it does not tell you how to "set it up" on a spread-sheet



Probably because they do not need to show you how to do that.

Their purpose is to fine you when your records are not accurate; not to show you how to comply!

fanpages

Probably because they do not need to show you how to do that.Their … Probably because they do not need to show you how to do that.Their purpose is to fine you when your records are not accurate; not to show you how to comply!



Pretty much this, they give guidance but not training. Most accounting software will make this fairly easy to deal with, all you have to do is put in the relevant vat analysis code.

Spenfica

As far as I can remember you would charge an EU customer £37.50 but it's … As far as I can remember you would charge an EU customer £37.50 but it's then up to you (and them) to declare the £7.50 on your VAT return.



only if they are a VAT registered in their own country and able to provide their national vat number
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