EU vat sale

[helenthemum]

Hi

I have been VAT registered for a couple of years, but this is the first time I have come across this and my accountant is away for a couple of days.

I am supplying some VATable goods to a company in Finland and they have supplied a valid VAT number (I have checked it out).

I have already emailed them an invoice including VAT at the UK standard rate and they have paid via bank transfer the full amount.

What do I do now?

I am a bit of a numpty when it comes to accounts.

Helen

[Newbie22]

Finland is a state of the EC..

So in theory you should not have charged vat, if you have their VAT number with the prefix "FI"..

What do you mean what do you do now? Do you have an accounts program? If you want to practice good accounting, you could always refund the VAT amount directly to them, debit and credit respectively.

Hope this helps you.

[helenthemum]

Thank you for your reply.

The invoice was emailed and paid before they gave their VAT number, so at the time I was correct in charging them VAT.

As you have said the matter can be sorted out post sale I will let my accountant talk me through it when I see him in a couple of weeks time.

Thank you.

Helen

[elainec100@cheapaccounting]

Helen

If at the time you did not have a valid vat number you are correct in charging the vat.

It is then up to your customer to have it refunded through the relevant system in Finland.

So nothing for you to do IMO but happy to be correct by 3pic etc etc as not me area of expertise here.

[helenthemum]

Thank you Elaine.

I will still check the procedure with my accountant in case I have another EU customer giving me their VAT number before I invoice them.

Helen

[elainec100@cheapaccounting]

Read here:

http://www.hmrc.gov.uk/vat/managing/international/index.htm

[helenthemum]

Will do.

Thank you for the link.