Shopify and Adobe VAT

[thetiger2015]

I'm trying to get to grips with Xero, it integrates with one of my new sites and I'm trying to get a better grasp of all things accounts/tax instead of having an overview of what I send to the accountants.

However, how do I account for Shopify and Adobe VAT?

Our business is VAT registered and UK based but Shopify is in Canada and Adobe seems to generate an invoice from Ireland?

The Shopify invoice will say something like $29 and then nothing else, no mention of VAT or charges
The Adobe invoice says £8.32 (reverse charge supply, customer to self assess VAT).

So in Xero, I have these options:

20% VAT on expenses
EC Acquisitions (20%)
EC Acquisitions (Zero Rated)
Reverse Charge Expenses (20%)

But which apply to the two above?

 

[TheCyclingProgrammer]

So long as both have been invoiced without VAT (presumably you have supplied your VAT number to both services) - and it sounds like they both have, then they are both accounted for under the reverse charge for services.

Does this explain it?
https://tv.xero.com/detail/video/5130974203001/vat-reverse-charges-ec-acquisitions-in-xero-uk

The end result should be that the purchase appears on your VAT return as if you'd both supplied and purchased it, with input and output VAT both accounted for.