Hi,
I am trialling Solar Accounts currently and so far I'm very pleased with it.
Just one thing if I enter a Purchase Invoice and the Vat Treatment is
Purchase of Services from EU Supplier, looking at the Vat Report it places the Vat in Box 1 is this correct? If I make it Purchase of Goods from EU Supplier it places the Vat in Box 2.

Hi David,

Although the supplier is in another EU country, Solar Accounts has assumed that the 'Place of Supply' for VAT purposes is in the UK. It therefore applies the 'reverse charge' rule, which puts the VAT amount in box 1 AND box 4 (cancelling each other out). See this page for details on Place of Supply rules:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_PROD1_029955&propertyType=document

If the 'Place of Supply' is in your supplier's country then the transaction is outside the scope of UK VAT. In this case you should recover the VAT as described here:
http://www.solaraccounts.co.uk/help/how-to-reclaim-eu-vat.php

Box 2 on the VAT return is only used for the purchase of goods from an EU supplier (not services). In that case Solar Accounts will populate Box 2 and Box 4 (cancelling each other out).

Regards

Thanks for the prompt reply. BTW the 'service' in question relates to Ebay Fees and I have just always placed them in Box 2 and reclaimed them in Box 4