UK supplier Invoice in Euros - accounting for VAT

Good day, I am after a bit of advice on how to account for VAT on a UK supplier’s invoice, invoiced in Euros. My UK supplier issues an invoice in Euros and has asked me to pay in Euros. This is fine as I can make a Euro payment from my bank. Alongside the Subtotal, 20% VAT and Total EUR values on the invoice. there are also equivalent values in GBP for reference. My question is, my bank’s exchange rate in making the invoice payment in EUR, was different to that of the GBP figures quoted on the supplier’s invoice. The supplier’s exchange rate used on their invoice for EUR > GBP is 1.2075 compared to my banks 1.1546, resulting in my final GBP cost being higher. I am right in assuming I use my GBP figures as this correlates to my costs and ignore the GBP figures on my supplier’s invoice as that is for their VAT accounting? Many thanks for your feedback.

Hi ,
 

You should use the GBP figure on the VAT invoice as the invoice is used as the evidence for your claim. Further information is provided in the following links : Record keeping (VAT Notice 700/21) AND section 7.6 of https: 7VAT guide (VAT Notice 700)  . Thank you .