Re: EU VAT

[lrspares45 <..hidden..>]

On Mon, 2011-08-08 at 07:59 -0700, Chris Travers wrote:
> Hi;
> 
> How many here have to report EU VAT?  How do you track tax rates and
> do your reporting?

Each country has it's own VAT rate, so for the UK I just set the current
rate in taxes, and use the 'start date' for changes. This seems to work
ok.

If sending goods to other EU countries, UK VAT is charged at the usual
rate, unless the customer provides a VAT number, in which case the goods
are supplied VAT-free, but sale has to be recorded on a supplemental VAT
form. This turns up if you put anything other than zero in the 'Supplies
to other EU countries' box, which is for VAT free supplies where a VAT
number has been supplied. I just recorded these by keeping the printed
invoices in a separate file! Purchasing from another country I'm not
sure about, as I never have. You can claim back the VAT paid in the
source country if you have paid it, or you have to pay VAT at your local
rate if you provided a VAT number to be exempted.

VAT is payable every three months, i.e. quarterly. The details are here
http://www.hmrc.gov.uk/vat/managing/returns-accounts/completing-returns.htm

and you should be able to down-load the form from that site.

There is a flat-rate scheme for those that choose that option, details
here
http://www.hmrc.gov.uk/vat/managing/returns-accounts/fat-rate-returns.htm 

The VAT people are actually amazingly helpful, they may even send you
assorted booklets if you ask them.

Records have to be kept for 7 years (under pain of death). Errors, under
Â10,000 I think, can be sorted out using the normal form, but bigger
ones require a call to the VAT man.

People get really excited about VAT, but for most businesses it's really
simple. Accounting software tends to present the numbers at the press of
a button at the quarter end (nice, but not essential), but it's simple
to do with LedgerSMB reports anyway.

Goods being permanently exported out of the EU are VAT free.

As far as I'm aware, all EU states work in the same way.

Hope that helps.

> 
> What works well?  What doesn't work so well?
> 
> Best Wishes,
> Chris Travers
> 
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