Daniel

Many thanks for your guidance - much appreciated

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.

Good day, I am after a bit of advice on how to handle an invoice from China in my UK VAT return. I am a VAT registered sole trader using Cash accounting based in the UK. My supplier in China provides translation services where the deliveries are translated files/documents. These are sent to me electronically. The files are for a customer in the EU. My supplier in China as part of their quote include a cost line entry ‘Tax by China (6.77%)’. In discussions with my supplier, they confirm this is their local VAT amount they need to charge me for their service. My question is, do I need to account for this 6.77% for UK VAT purposes, or do I count this just as part of their service cost, as they are based in China. If I do need to account for this, after payment of the invoice (they invoice in USD) take the final GBP conversion figure from my bank statement, for the payment, and allocate 6.77% of the GBP cost as VAT, in my relevant quarterly return? Many thanks for your feedback.

Good day, I am after a bit of advice on how to handle a VAT invoice correction. To set the scene, I am a VAT registered sole trader using Cash accounting. I am about to submit my first VAT return for April to June just gone and on reviewing my figures I noticed an error in one of my first VAT invoices in April. The figures listed were: Net Price (GBP) £810.00 VAT 20% of (GBP) £172.00 TOTAL (GBP) £972.00 The Net Price and Total are correct but for VAT @ 20% I listed £172.00 instead of £162.00. To correct this, I have issued a Credit Note and a new Invoice to my customer, so as it stands, the original invoice was paid on the 31/05/2024 and the credit Note and new Invoice were issued on the 09/07/2024. My question is, am I right in assuming that as I have yet to submit my return for this period, looking at the VAT Manual – VATTOS5230, even though the Credit Note and New Invoice were submitted in July, the tax point created by the original invoice does not change, so I can just update my figures for that invoice in my April – June return and submit it (adding a note in my records regarding the credit note and new invoice submitted in July)? As shown my total figure was correct so there is no consideration in the change of supply or payment total - the only adjustment was to correct the listed VAT figure. Many thanks for your guidance, Warm regards, 

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