Just had a horrible thought.
On VAT return Box 4 states "VAT reclaimed ------on purchases and other inputs (INCLUDING ACQUISITIONS FROM THE EC).
The VAT Return Detail report would suggest that the VAT on EC acquisitions is not included in Box 4 in the Solar copy of the VAT return.
If this is the case we are accounting for EC VAT in Box 2 but not reclaiming it in Box 4.
Please tell me that I'm wrong.
Hi Jack,
Are you talking about the purchase of goods (not services) from another EU country? If so, your supplier will not usually charge VAT - in this case you should enter the VAT amount in Box 2 AND Box 4. These two figures cancel out and so have no affect on Box 5. Solar Accounts will do this automatically if you set the VAT Treatment to 'Purchase of Goods from EU Supplier'.
Regards
My apologies, Mark.
I hadn't spotted that the VAT on EC acquisitions was also included in the "VAT on Purchases" section.
How could I have doubted the system. !!!!