final few questions re VAT return

[myk3]

Hi there,

I have compiled a list of all VAT in and VAT out transactions which we have invoiced or have a receipt for.

this is my first VAT return and i have some quick questions to so that i can get this done and out the way.

in box 7 i understand that i have to put in all standard, zero rated or exempt VAT purchases. Currently i have compiled an excel sheet with all purchases within the VAT peroid with their VAT (if applicable) in a VAT section.

to get the total required in box 7 i need to remove any purchases which are not standard, zero rated or exempt VAT. Below is some examples of purchases i am unaware if they should be removed or not.

1. We have a service which is outsourced to a company in India, They provide and invoice and there is not VAT included. My assumption is because they are not in the EU that VAT is not due and i do not need to account for this in box 7?

2. Travel cards, oyster etc. my understanding is that these are exempt for VAT and will be required to account for in box 7?

3. We have a re-occurring payment to sipgate who are in Germany who provide our hosted PBX. They used to charge VAT until we gave them our VAT number. Now all purchases have not VAT included. do we still need to account for these?

4. We use some services from providers in the USA. godaddy is one, their invoices include a EU826010755 VAT number. firstly can we claim this back? and also do we need to account for this in box 7?

Once i have an understanding of these we will be able to submit our VAT return and also make next quarter a doddle.

thanks!

Mike

 

[Scalloway]

For services obtained outside the UK you need to look into Reverse Charge

http://www.hmrc.gov.uk/vat/managing/international/imports/importing.htm#3

 

[andygambles]

1) You account for VAT and claim it back in the same return. To provide HMRC with statistical tracking you also record the purchase as a sale (I know sounds stupid). Say invoice was £100.00 and VAT is 20%

BOX 1 = 20
BOX 4 = 20
BOX 6 = 100
BOX 7 = 100

2) Exempt from VAT so just include in Box 7

3) You still account for what the VAT would have been and claim it back on the same return. So example is same as 1.

4) You can not claim back VAT on an EUXXXX VAT number because GoDaddy may pay this VAT to a different member state. Instead you must supply GoDaddy with your VAT Number and do as per answer 3. Therefore you will just have to include the VAT charged in Box 7.

*I am not an accountant

 

[myk3]

Thanks for the 2 informative answers I will read the article as advised.

 

[David Richards]

2) Exempt from VAT so just include in Box 7

Technically most forms of passenger transport are zero-rated rather than exempt. But in this instance the effect on the VAT return is the same.

 

[myk3]

1) You account for VAT and claim it back in the same return. To provide HMRC with statistical tracking you also record the purchase as a sale (I know sounds stupid). Say invoice was £100.00 and VAT is 20%

BOX 1 = 20
BOX 4 = 20
BOX 6 = 100
BOX 7 = 100

Hi Andy,

thanks for this was very informative. just to get this right... we are charged this service in India every month. So there is 3 x payments for this VAT return.

so using your example we would add the VAT to each purchase and then declare the VAT and claim it back thus paying 0 VAT.

using your example above lets say the service is £100 per month (2 of which are at the 17.5% rate).

17.5% x 2 month at £100 each is £35.
20% x 1 Month at £100 is £20.

the total including VAT for these 3 purchases is £355 (£55 is VAT).

so the following would be entered into the boxes as per your example:

BOX 1 = 55
BOX 4 = 55
BOX 6 = 300
BOX 7 = 300

essentially declaring and paying the VAT on the purchase and then claiming it back in one.

best,

Mike

 

[andygambles]

so the following would be entered into the boxes as per your example:

BOX 1 = 55
BOX 4 = 55
BOX 6 = 355
BOX 7 = 355

Almost. Do not include the VAT amounts in box 6 and 7.

BOX 1 = 55
BOX 4 = 55
BOX 6 = 300
BOX 7 = 300

 

[myk3]

Almost. Do not include the VAT amounts in box 6 and 7.

BOX 1 = 55
BOX 4 = 55
BOX 6 = 300
BOX 7 = 300

lol, you must have just ready my post before i edited that!

 

[CabSave]

To give HMRC you also record the purchase as a sale.Say invoice was £100.00 and VAT is 15%
BOX 1 = 55
BOX 4 = 55
BOX 6 = 250
BOX 7 = 250

 

[andygambles]

To give HMRC you also record the purchase as a sale.Say invoice was £100.00 and VAT is 15%
BOX 1 = 55
BOX 4 = 55
BOX 6 = 250
BOX 7 = 250

Erm how on earth do you get those figures from £100 and 15% VAT?