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VAT rate for goods purchased from EU countries

Started by Matthew Burgon -   in Using Xero

I have a VAT registered UK company and I'm getting confused between the different tax rates in Xero for purchases of goods from other EU countries. Can anyone confirm whether my understanding is correct:

If my company purchases goods from an EU supplier, the tax rate in Xero is: “EC Acquisitions (20%)” provided that the supplier:
• is registered for VAT in the relevant EU country
• provides an invoice that includes both its VAT number and my company's VAT number

If my company purchases goods from an EU supplier, the tax rate in Xero is: “EC Acquisitions (Zero Rated)” (or is it “Zero Rated EC Expenses”??), if the supplier:
• is NOT registered for VAT in the relevant EU country (eg, a consumer)
• is registered for VAT but fails to include its VAT number and our VAT number on its invoice

Or is it even more complicated?

Many thanks
It's not exactly straight forward:

The tax rate "EC Acquisitions (20%)" is for goods from EU suppliers if the goods are subject to standard rate VAT if purchased in the UK.

The tax rate "EC Acquisitions (Zero Rated)" is for goods from EU suppliers if the goods are zero rated for VAT if purchased in the UK.

In both cases the EU supplier will be VAT registered in their country and not charging VAT on the bill.
 

John Knight  

Thanks for the response, but isn't that what I'm saying in another way?
I understand that goods which would be standard rated if bought from a VAT-registered supplier, are zero rated in the UK if no VAT invoice is supplied - that is, they are bought from a UK supplier who:
(a) cannot provide a VAT invoice because they are a consumer or non-VAT-registered company; or
(b) in rare cases, fails to provide a VAT invoice when requested even though VAT registered.
 

Matthew Burgon  

No, I mean goods that HMRC says are zero-rated for VAT in the UK when sold by a VAT registered supplier, eg children's clothes, health and safety gear, books, most foods etc.

Both EC Acquisition tax rates put the net value of the goods supplied in box 9 of the VAT return. EC Acquisitions (20%) also puts notional amounts of VAT in boxes 2 and 4 in line with the reverse charge procedure. You don't need to do that if the goods supplied are zero-rated.
 

John Knight