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EU VAT BA4

  • Student
  • 7 posts
  • # 115820

Good morning,

 

I am just going over my mocks and revising for this exam. One of the mocks has a question I am still puzzled over- On the VAT EU section there's a question that mentions a purchase from  VAT registered supplier in Ireland. I didnt tick box 1, but apparently I should have.

Why would box 1 be ticked?  It mentions that box 1 would include the vat that would have been charged on a VAT reverse charge.

 

Can anyone explain this as It's only talikng here about an eu purchase. What would be reversed. Does this mean if you make an EU purchase you can claim the VAT Back and so it goes in both 1 and 2 and cancels itself out in this way? My head is in knots!



Edited at 22 Oct 2017 07:49 AM GMT

  • Member
  • Practice Licence
  • 28 posts
  • # 115821

Hi Tina

Is the EU acquisition a service rather than goods?

If so the reverse charge applies so account for vat in box 1, add back in box 4. Then enter value of supply in boxes 6 and 7.

Hope this helps.

Trish

  • Student
  • 7 posts
  • # 115822

Thanks for replying. That's what is confusing me. The answer says to include it in 1 but it's an EU purchase not a service. Does the same apply if it's not a service?

  • Member
  • Practice Licence
  • 28 posts
  • # 115823

Hi Tina

If it's definitely goods then boxes 2,4,7 and 9.

Only services are subject to reverse charge.

 

  • Student
  • 7 posts
  • # 115824

Gravelpit said:

Hi Tina

If it's definitely goods then boxes 2,4,7 and 9.

Only services are subject to reverse charge.

 


 Thanks Trish

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